Liberty Property Trust (LRY), a real estate investment trust (REIT), has recently completed the divesture of 49 non-core assets for approximately $195 million. Spanning 2.5 million square feet of space, the divested properties were located in diverse markets, including Wisconsin, Maryland, Virginia, North Carolina and New Jersey.
The sold properties that were 83% leased at the close of the transaction comprised primarily of single-story and mid-rise office buildings and high-finish flex properties. The asset sale was in tune with the corporate strategy of the company to reduce its exposure to the suburban office market and instead focus on the industrial property portfolio.
In accordance with this strategic plan, Liberty Property has completely exited the suburban office markets in Milwaukee, Richmond, and Greensboro in the last 10 months, while significantly reducing its office portfolio in New Jersey.
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 has a strong portfolio of multi-tenant industrial and office properties in prime business locations in the U.S. and U.K., and operates across multiple markets that enable mitigation of geographical risk.
Liberty Property specifically focuses on metro-office, multi-tenant industrial and flex properties and markets that possess strong demographic and economic fundamentals, which ensure a steady revenue stream for the company.
We maintain our long-term Neutral recommendation for Liberty Property, which currently has a Zacks #3 Rank that translates into a short-term Hold rating. We also have a long-term Neutral recommendation and a Zacks #4 Rank (short-term Sell rating) for Duke Realty Corp. (DRE), one of the competitors of Liberty Property.
To read this article on Zacks.com click here.
Zacks Investment Research
