Liberty Property Trust Announces 9.1% Increase in Funds From Operations

Apr 23, 2001, 01:00 ET from Liberty Property Trust

    MALVERN, Pa., April 23 /PRNewswire Interactive News Release/ -- Liberty
 Property Trust (NYSE:   LRY) reported that funds from operations ("FFO") for the
 first quarter of 2001 increased to $63.6 million, from $56.4 million for the
 first quarter of 2000.  On a per share basis, FFO increased by 9.1%, to $.84
 per share for the quarter ended March 31, 2001, compared to $.77 per share for
 the quarter ended March 31, 2000.  FFO per share is calculated on a diluted
 basis, which assumes full conversion of Liberty Property Limited Partnership's
 subordinated debentures.
     Net income per common share (diluted) increased to $.55 per share for the
 quarter ended March 31, 2001, from $.51 per share (diluted) for the quarter
 ended March 31, 2001.
     "We are pleased to report that Liberty's business strategy of investing
 prudently in stable and sustainable markets continues to result in solid
 growth and high returns on investment," said Willard G. Rouse III, CEO.
 "While we are not immune to economic conditions, our existing portfolio
 remains in excellent shape, and we continue to take advantage of select
 opportunities for growth.  As a result, we believe Liberty is well positioned
 to continue to produce value for our shareholders."
 
     Real Estate Investments
     Liberty's markets continue to generate attractive development and
 acquisition opportunities.
     Development: Liberty's development pipeline continues to increase the
 quality of the portfolio and generate some of the highest yields in the
 industry.  During the first quarter, Liberty brought into service seven
 development properties, which are currently yielding 12.4% on the Company's
 $56.7 million investment.
     Liberty started construction on $70.5 million in new developments during
 the quarter.  At March 31, Liberty's development pipeline totaled
 $391.0 million, was 47.2% pre-leased, and is expected to generate yields of
 12.8%.
     Acquisitions:  During the quarter, Liberty acquired three properties for
 $23.8 million.  These properties contain 283,000 feet of leaseable space and
 are 26.8% leased.  Upon completion of leasing, Liberty expects the yield on
 these investments to stabilize at 12.0%.
 
     Portfolio Performance
     Leasing: At March 31, Liberty's in-service portfolio of 49 million square
 feet was 95.1% occupied.  Rents on renewal and replacement leases commenced
 during the quarter increased on a straight line basis by 20.5%.
     Same Store Performance: Property-level operating income for same store
 properties increased by 5.5% on a cash basis and 4.9% on a straight line basis
 for the quarter.
 
     Financing and Balance Sheet Management
     Liberty funds its growth through a strategic capital plan combining select
 targeting of the debt markets with a property disposition program.
     Property Sales: Liberty realized $13.6 million in proceeds from the sale
 of three properties and 14 acres of land during the first quarter.
     Debt Issuance: Liberty raised $246.2 million through the sale of 7.25%
 senior notes due 2011.  The proceeds were used to pay down the outstanding
 borrowings under Liberty's unsecured credit facility and for general corporate
 purposes.
     Ratings Upgrade Obtained: On April 9, Standard and Poor's raised its
 corporate credit rating for the Company from BBB- to BBB.
 
     Liberty Property Trust (NYSE:   LRY) is a leading real estate Company
 dedicated to enhancing people's lives through extraordinary work environments.
 Liberty's 49-million-square-foot portfolio of office and industrial properties
 offers exceptional locations, flexible design, thoughtful amenities, superior
 service, and state-of-the-art technology to the Company's almost 2,000
 tenants.  Liberty continuously increases the value of this portfolio through
 expert property management, marketing and development.
 
     Additional information about the Company, including Liberty's Quarterly
 Supplemental Package with detailed financial information is available in the
 Investor section of the Company's web site at www.libertyproperty.com.  The
 first quarter supplemental package will be available on-line by 8:00 a.m. on
 April 24, 2001.  If you are unable to access the web site, a copy of the
 supplemental package may be obtained by contacting Liberty by phone at
 610-648-1708, or by e-mail to ciacavino@libertyproperty.com.
 
     Liberty will host a conference call during which management will discuss
 first quarter results, on Tuesday, April 24, 2001, at 2:00 eastern standard
 time.  To access the conference call, please dial 1-800-252-8302 shortly
 before 2:00.  No password or code is needed.  Replays of the call will be
 available on Tuesday, April 24, after 5:00 eastern standard time.  The phone
 number for the replay is 1-800-633-8284.  A passcode is needed for the replay:
 18516976.  The call can also be accessed live via the Internet on the Investor
 Relations page of Liberty's web site at www.libertyproperty.com for one week
 following the call.
 
     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 ability to enter into new leases on favorable
 terms, 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
                                   Balance Sheet
                                   March 31, 2001
                        (In thousands, except share amounts)
 
 
                                                      3/31/01       12/31/00
 
     Assets
     Real estate:
       Land and land improvements                    $458,316       $443,057
       Building and improvements                    2,819,251      2,759,420
       Less: accumulated depreciation                (355,006)      (334,415)
 
         Operating real estate                      2,922,561      2,868,062
 
       Development in progress                        220,657        208,486
       Land held for development                      157,870        137,402
 
         Net real estate                            3,301,088      3,213,950
 
       Cash and cash equivalents                        3,410          4,638
       Accounts receivable                             16,604         12,624
       Deferred financing and leasing costs, net
        of accumulated amortization
        (2001, $62,681; 2000, $59,071)                 61,926         57,807
       Prepaid expenses and other assets               80,380        107,336
 
       Total assets                                $3,463,408     $3,396,355
 
     Liabilities
       Mortgage loans                                $357,224       $362,025
       Unsecured notes                              1,345,000      1,095,000
       Credit facility                                      -        176,000
       Convertible debentures                          43,311         70,871
       Accounts payable                                27,733         15,672
       Accrued interest                                20,178         29,478
       Dividend payable                                44,091         43,220
       Other liabilities                               77,183         84,515
 
       Total liabilities                            1,914,720      1,876,781
 
       Minority interest                              189,635        198,769
 
     Shareholders' Equity
       Series A preferred shares, $.001 par value,
        5,000,000 shares authorized, 5,000,000
        shares issued and outstanding as of
       March 31, 2001 and December 31, 2000           120,814        120,814
        Common shares of beneficial interest,
        $.001 par value, 191,200,000 shares
        authorized, 70,259,559 (includes 59,100
        in treasury) and 68,272,079 (includes
        59,100 in treasury) shares issued and
        outstanding as of March 31, 2001 and
        December 31, 2000, respectively                    70             68
       Additional paid-in capital                   1,262,943      1,223,191
       Unearned compensation                           (1,576)        (1,690)
       Distributions in excess of net income          (21,871)       (20,251)
       Common shares in treasury, at cost,
        59,100 shares at March 31, 2001 and
        December 31, 2000                              (1,327)        (1,327)
       Total shareholders' equity                   1,359,053      1,320,805
 
       Total liabilities & shareholders' equity    $3,463,408     $3,396,355
 
                               Liberty Property Trust
                               Results of Operations
                                   March 31, 2001
                      (In thousands, except per share amounts)
 
 
                                                          Quarter Ended
                                                    March 31,       March 31,
                                                       2001           2000
      Revenue
      Rental                                         $102,586        $91,972
      Operating expense reimbursement                  41,604         35,771
      Interest and other                                1,417          1,216
       Total revenue                                  145,607        128,959
 
      Operating Expenses
      Rental property expenses                         29,217         24,622
      Real estate taxes                                13,430         12,524
      Interest                                         27,788         25,650
      General and administrative                        5,759          4,445
      Depreciation and amortization                    24,944         22,648
       Total operating expenses                       101,138         89,889
 
      Income before property dispositions,
       extraordinary item and minority interest        44,469         39,070
      Gain (loss) on property dispositions              1,477          4,353
      Income before extraordinary item and
      minority interest                                45,946         43,423
      Extraordinary item - loss on
       extinguishment of debt                               -         (1,875)
      Income before minority interest                  45,946         41,548
      Minority interest                                (4,830)        (4,679)
      Net income                                       41,116         36,869
      Preferred share distributions                    (2,750)        (2,750)
      Income available to common shareholders         $38,366        $34,119
 
      Income per common share - basic                   $0.56          $0.51
 
      Income per common share - diluted                 $0.55          $0.51
 
      Addback:
      Minority interest excluding preferred unit
      distributions                                     2,177          2,482
      Depreciation and amortization                    24,533         22,262
      Extraordinary item - loss on extinguishments
       of debt                                              -          1,875
      (Gain) loss on property dispositions             (1,477)        (4,353)
      Funds from operations                           $63,599        $56,385
 
      Funds from operations per share - diluted (1)     $0.84          $0.77
 
 
      Diluted weighted average shares                  77,028         76,155
 
     (1) Add interest and amortization of deferred financing costs on
 debentures of $1,371 and $2,305 for the quarters ended March 31, 2001 and
 2000, respectively, to calculate diluted per share amounts.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X07718113
 
 

SOURCE Liberty Property Trust
    MALVERN, Pa., April 23 /PRNewswire Interactive News Release/ -- Liberty
 Property Trust (NYSE:   LRY) reported that funds from operations ("FFO") for the
 first quarter of 2001 increased to $63.6 million, from $56.4 million for the
 first quarter of 2000.  On a per share basis, FFO increased by 9.1%, to $.84
 per share for the quarter ended March 31, 2001, compared to $.77 per share for
 the quarter ended March 31, 2000.  FFO per share is calculated on a diluted
 basis, which assumes full conversion of Liberty Property Limited Partnership's
 subordinated debentures.
     Net income per common share (diluted) increased to $.55 per share for the
 quarter ended March 31, 2001, from $.51 per share (diluted) for the quarter
 ended March 31, 2001.
     "We are pleased to report that Liberty's business strategy of investing
 prudently in stable and sustainable markets continues to result in solid
 growth and high returns on investment," said Willard G. Rouse III, CEO.
 "While we are not immune to economic conditions, our existing portfolio
 remains in excellent shape, and we continue to take advantage of select
 opportunities for growth.  As a result, we believe Liberty is well positioned
 to continue to produce value for our shareholders."
 
     Real Estate Investments
     Liberty's markets continue to generate attractive development and
 acquisition opportunities.
     Development: Liberty's development pipeline continues to increase the
 quality of the portfolio and generate some of the highest yields in the
 industry.  During the first quarter, Liberty brought into service seven
 development properties, which are currently yielding 12.4% on the Company's
 $56.7 million investment.
     Liberty started construction on $70.5 million in new developments during
 the quarter.  At March 31, Liberty's development pipeline totaled
 $391.0 million, was 47.2% pre-leased, and is expected to generate yields of
 12.8%.
     Acquisitions:  During the quarter, Liberty acquired three properties for
 $23.8 million.  These properties contain 283,000 feet of leaseable space and
 are 26.8% leased.  Upon completion of leasing, Liberty expects the yield on
 these investments to stabilize at 12.0%.
 
     Portfolio Performance
     Leasing: At March 31, Liberty's in-service portfolio of 49 million square
 feet was 95.1% occupied.  Rents on renewal and replacement leases commenced
 during the quarter increased on a straight line basis by 20.5%.
     Same Store Performance: Property-level operating income for same store
 properties increased by 5.5% on a cash basis and 4.9% on a straight line basis
 for the quarter.
 
     Financing and Balance Sheet Management
     Liberty funds its growth through a strategic capital plan combining select
 targeting of the debt markets with a property disposition program.
     Property Sales: Liberty realized $13.6 million in proceeds from the sale
 of three properties and 14 acres of land during the first quarter.
     Debt Issuance: Liberty raised $246.2 million through the sale of 7.25%
 senior notes due 2011.  The proceeds were used to pay down the outstanding
 borrowings under Liberty's unsecured credit facility and for general corporate
 purposes.
     Ratings Upgrade Obtained: On April 9, Standard and Poor's raised its
 corporate credit rating for the Company from BBB- to BBB.
 
     Liberty Property Trust (NYSE:   LRY) is a leading real estate Company
 dedicated to enhancing people's lives through extraordinary work environments.
 Liberty's 49-million-square-foot portfolio of office and industrial properties
 offers exceptional locations, flexible design, thoughtful amenities, superior
 service, and state-of-the-art technology to the Company's almost 2,000
 tenants.  Liberty continuously increases the value of this portfolio through
 expert property management, marketing and development.
 
     Additional information about the Company, including Liberty's Quarterly
 Supplemental Package with detailed financial information is available in the
 Investor section of the Company's web site at www.libertyproperty.com.  The
 first quarter supplemental package will be available on-line by 8:00 a.m. on
 April 24, 2001.  If you are unable to access the web site, a copy of the
 supplemental package may be obtained by contacting Liberty by phone at
 610-648-1708, or by e-mail to ciacavino@libertyproperty.com.
 
     Liberty will host a conference call during which management will discuss
 first quarter results, on Tuesday, April 24, 2001, at 2:00 eastern standard
 time.  To access the conference call, please dial 1-800-252-8302 shortly
 before 2:00.  No password or code is needed.  Replays of the call will be
 available on Tuesday, April 24, after 5:00 eastern standard time.  The phone
 number for the replay is 1-800-633-8284.  A passcode is needed for the replay:
 18516976.  The call can also be accessed live via the Internet on the Investor
 Relations page of Liberty's web site at www.libertyproperty.com for one week
 following the call.
 
     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 ability to enter into new leases on favorable
 terms, 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
                                   Balance Sheet
                                   March 31, 2001
                        (In thousands, except share amounts)
 
 
                                                      3/31/01       12/31/00
 
     Assets
     Real estate:
       Land and land improvements                    $458,316       $443,057
       Building and improvements                    2,819,251      2,759,420
       Less: accumulated depreciation                (355,006)      (334,415)
 
         Operating real estate                      2,922,561      2,868,062
 
       Development in progress                        220,657        208,486
       Land held for development                      157,870        137,402
 
         Net real estate                            3,301,088      3,213,950
 
       Cash and cash equivalents                        3,410          4,638
       Accounts receivable                             16,604         12,624
       Deferred financing and leasing costs, net
        of accumulated amortization
        (2001, $62,681; 2000, $59,071)                 61,926         57,807
       Prepaid expenses and other assets               80,380        107,336
 
       Total assets                                $3,463,408     $3,396,355
 
     Liabilities
       Mortgage loans                                $357,224       $362,025
       Unsecured notes                              1,345,000      1,095,000
       Credit facility                                      -        176,000
       Convertible debentures                          43,311         70,871
       Accounts payable                                27,733         15,672
       Accrued interest                                20,178         29,478
       Dividend payable                                44,091         43,220
       Other liabilities                               77,183         84,515
 
       Total liabilities                            1,914,720      1,876,781
 
       Minority interest                              189,635        198,769
 
     Shareholders' Equity
       Series A preferred shares, $.001 par value,
        5,000,000 shares authorized, 5,000,000
        shares issued and outstanding as of
       March 31, 2001 and December 31, 2000           120,814        120,814
        Common shares of beneficial interest,
        $.001 par value, 191,200,000 shares
        authorized, 70,259,559 (includes 59,100
        in treasury) and 68,272,079 (includes
        59,100 in treasury) shares issued and
        outstanding as of March 31, 2001 and
        December 31, 2000, respectively                    70             68
       Additional paid-in capital                   1,262,943      1,223,191
       Unearned compensation                           (1,576)        (1,690)
       Distributions in excess of net income          (21,871)       (20,251)
       Common shares in treasury, at cost,
        59,100 shares at March 31, 2001 and
        December 31, 2000                              (1,327)        (1,327)
       Total shareholders' equity                   1,359,053      1,320,805
 
       Total liabilities & shareholders' equity    $3,463,408     $3,396,355
 
                               Liberty Property Trust
                               Results of Operations
                                   March 31, 2001
                      (In thousands, except per share amounts)
 
 
                                                          Quarter Ended
                                                    March 31,       March 31,
                                                       2001           2000
      Revenue
      Rental                                         $102,586        $91,972
      Operating expense reimbursement                  41,604         35,771
      Interest and other                                1,417          1,216
       Total revenue                                  145,607        128,959
 
      Operating Expenses
      Rental property expenses                         29,217         24,622
      Real estate taxes                                13,430         12,524
      Interest                                         27,788         25,650
      General and administrative                        5,759          4,445
      Depreciation and amortization                    24,944         22,648
       Total operating expenses                       101,138         89,889
 
      Income before property dispositions,
       extraordinary item and minority interest        44,469         39,070
      Gain (loss) on property dispositions              1,477          4,353
      Income before extraordinary item and
      minority interest                                45,946         43,423
      Extraordinary item - loss on
       extinguishment of debt                               -         (1,875)
      Income before minority interest                  45,946         41,548
      Minority interest                                (4,830)        (4,679)
      Net income                                       41,116         36,869
      Preferred share distributions                    (2,750)        (2,750)
      Income available to common shareholders         $38,366        $34,119
 
      Income per common share - basic                   $0.56          $0.51
 
      Income per common share - diluted                 $0.55          $0.51
 
      Addback:
      Minority interest excluding preferred unit
      distributions                                     2,177          2,482
      Depreciation and amortization                    24,533         22,262
      Extraordinary item - loss on extinguishments
       of debt                                              -          1,875
      (Gain) loss on property dispositions             (1,477)        (4,353)
      Funds from operations                           $63,599        $56,385
 
      Funds from operations per share - diluted (1)     $0.84          $0.77
 
 
      Diluted weighted average shares                  77,028         76,155
 
     (1) Add interest and amortization of deferred financing costs on
 debentures of $1,371 and $2,305 for the quarters ended March 31, 2001 and
 2000, respectively, to calculate diluted per share amounts.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X07718113
 
 SOURCE  Liberty Property Trust