Office and industrial markets continue to weaken throughout the US. In the current environment, we do not favor suburban industrial/office companies as rental rates and occupancies will continue their downward spiral. Negative job growth trends will keep shares under pressure.
Liberty Property (LRY) reported 1Q09 FFO of $0.72 per share vs. $0.80 in 1Q08. Overall leasing activity slowed during the quarter. To increase liquidity LRY has been raising capital through asset sales, equity issuance, and property level debt. The company now has plenty of liquidity to address near-term debt maturities.
LRY has revised its 2009 FFO guidance from $3.00 – $3.20 per share to $2.70 – $2.90 due to dilution from new shares. We maintain our Sell rating based primarily on macroeconomic factors.Zacks Investment Research
