Liberty Property Acquires Asset - Analyst Blog

Liberty Property Trust (LRY), a leading real estate investment trust (REIT), has recently acquired a warehouse distribution center in southwest Orlando, Florida, for $23.6 million from CVS Caremark Corporation (CVS), the largest pharmacy healthcare provider in the U.S. The deal is the largest of its kind in the region so far in 2010.

The acquisition was part of the long-term strategy of the company to own high quality office and industrial properties in Florida. Spanning across 740,260 square feet of space, the distribution facility was fully leased at the time of the sale. With the acquisition, Liberty Property currently owns over 4.5 million square feet of space in Orlando.

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 focuses primarily on prime suburban properties in the Southeast, Mid-Atlantic, and Midwest regions of the U.S. In addition, Liberty Property also owns certain assets in the U.K.

Liberty Property’s assets are designed to accommodate various types of tenants and space requirements. The company specifically focuses on metro-office, multi-tenant industrial and flex properties and markets that have strong demographic and economic fundamentals, ensuring a steady revenue stream for the company.

Furthermore, Liberty Property operates in multiple markets that enable it to diversify geographical risk. In each of these markets, the company offers an appropriate mix of office and industrial properties. The company is also repositioning its portfolio as it intends to focus on higher growth markets characterized by better job and rent growth prospects. The current rating on Liberty Property is “Neutral” with a Zacks #3 Rank, which translates into a short-term ‘Hold’ recommendation.