Liberty Property Trust Announces First Quarter 2012 Results

2012 Range

Low

High

Projected net income per share

$ 1.03

$ 1.17

Depreciation and amortization of unconsolidated joint ventures

0.12

0.14

Depreciation and amortization

1.45

1.47

Gain on property dispositions

(0.10)

(0.13)

Projected funds from operations per share

$    2.50

$   2.65

 Liberty Property Trust 

 Statement of Operations 

March 31, 2012

 (Unaudited and in thousands, except per share amounts) 

 Quarter Ended 

March 31, 2012

March 31, 2011

 Operating Revenue 

 Rental  

$                           119,591

$                           114,724

  Operating expense reimbursement

50,346

51,410

 Total operating revenue 

169,937

166,134

 Operating Expenses 

  Rental property

30,440

31,750

 Real estate taxes 

20,782

19,489

 General and administrative

17,204

15,949

 Depreciation and amortization 

41,367

39,077

 Total operating expenses 

109,793

106,265

 Operating Income 

60,144

59,869

 Other Income/Expense 

 Interest and other  

2,762

2,589

 Interest  

(28,476)

(32,889)

 Total other income/expense 

(25,714)

(30,300)

 Income before property dispositions, income taxes, noncontrolling interest 

    and equity in earnings of unconsolidated joint ventures 

34,430

29,569

 Gain on property dispositions 

523

1,161

 Income taxes 

(178)

(550)

 Equity in earnings of unconsolidated joint ventures 

916

534

 Income from continuing operations 

35,691

30,714

 Discontinued operations (including net gain on property dispositions of 

$1,064 and $470 for the quarters ended March 31, 2012 and 2011, respectively)

3,911

4,229

 Net Income 

39,602

34,943

 Noncontrolling interest - operating partnerships 

(2,513)

(6,235)

 Noncontrolling interest - consolidated joint ventures 

-

201

 Net Income available to common shareholders     

$                             37,089

$                             28,909

 Net income 

$                             39,602

$                             34,943

 Other comprehensive income 

2,317

2,144

 Comprehensive income 

41,919

37,087

 Less: comprehensive income attributable to noncontrolling interest 

(2,586)

(6,306)

 Comprehensive income attributable to common shareholders 

$                             39,333

$                             30,781

 Basic income per common share  

 Continuing operations 

$                                 0.29

$                                 0.21

 Discontinued operations 

$                                 0.03

$                                 0.04

 Total basic income per common share 

$                                 0.32

$                                 0.25

 Diluted income per common share 

 Continuing operations 

$                                 0.29

$                                 0.21

 Discontinued operations 

$                                 0.03

$                                 0.04

 Total diluted income per common share 

$                                 0.32

$                                 0.25

 Weighted average shares 

 Basic 

115,972

114,013

 Diluted 

116,743

114,766

 Amounts attributable to common shareholders     

 Income from continuing operations 

$                             33,301

$                             24,820

 Discontinued operations 

3,788

4,089

 Net income 

$                             37,089

$                             28,909

 Liberty Property Trust 

 Statement of Funds From Operations 

March 31, 2012

 (Unaudited and in thousands, except per share amounts) 

 Quarter Ended 

March 31, 2012

March 31, 2011

Per 

Per 

Weighted

Weighted

 Average  

 Average  

Dollars

Share

Dollars

Share

 Reconciliation of net income to FFO - basic: 

 Basic - income available to common shareholders 

$              37,089

$             0.32

$              28,909

$                         0.25

 Adjustments: 

 Depreciation and amortization of unconsolidated joint ventures 

3,616

3,649

 Depreciation and amortization 

41,046

43,971

 Gain on property dispositions 

(1,104)

(500)

 Noncontrolling interest share in addback for depreciation and amortization 

 and gain on property dispositions 

(1,373)

(1,558)

 Funds from operations available to common shareholders - basic 

$              79,274

$             0.68

$              74,471

$                         0.65

 Reconciliation of net income to FFO - diluted: 

 Diluted - income available to common shareholders 

$              37,089

$             0.32

$              28,909

$                         0.25

 Adjustments: 

 Depreciation and amortization of unconsolidated joint ventures 

3,616

3,649

 Depreciation and amortization  

41,046

43,971

 Gain on property dispositions 

(1,104)

(500)

 Noncontrolling interest excluding preferred unit distributions  

1,207

982

 Funds from operations available to common shareholders - diluted 

$              81,854

$             0.68

$              77,011

$                         0.65

 Reconciliation of weighted average shares: 

 Weighted average common shares - all basic calculations 

115,972

114,013

 Dilutive shares for long term compensation plans 

771

753

 Diluted shares for net income calculations 

116,743

114,766

 Weighted average common units 

3,809

3,929

 Diluted shares for Funds from operations calculations 

120,552

118,695

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 

March 31, 2012

(In thousands, except share and unit amounts)

March 31, 2012

December 31, 2011

Assets

 (unaudited) 

Real estate:

Land and land improvements

$                         854,972

$                         855,213

Building and improvements

4,117,093

4,109,783

Less: accumulated depreciation

(1,088,301)

(1,058,283)

Operating real estate

3,883,764

3,906,713

Development in progress

138,634

88,848

Land held for development

218,926

219,375

Net real estate

4,241,324

4,214,936

Cash and cash equivalents

27,650

18,204

Restricted cash

39,188

63,659

Accounts receivable

9,210

8,192

Deferred rent receivable

104,502

103,002

Deferred financing and leasing costs, net of accumulated

amortization (2012, $128,303; 2011, $123,822)

130,843

130,160

Investments in and advances to unconsolidated joint ventures

174,651

174,687

Assets held for sale  

197,737

200,647

Prepaid expenses and other assets

90,189

76,186

Total assets

$                      5,015,294

$                      4,989,673

Liabilities

Mortgage loans

$                         282,716

$                         290,819

Unsecured notes

1,792,643

1,792,643

Credit facility

293,300

139,400

Accounts payable 

32,310

23,418

Accrued interest

33,036

24,147

Dividend and distributions payable

57,393

56,958

Other liabilities

177,590

194,995

Total liabilities

2,668,988

2,522,380

Noncontrolling interest - operating partnership - 301,483 preferred units

outstanding as of March 31, 2012 and December 31, 2011

7,537

7,537

Equity

Shareholders' equity:

Common shares of beneficial interest, $.001 par value, 183,987,000 shares

authorized, 118,264,957 (includes 1,249,909 in treasury) and 117,352,353

(includes 1,249,909 in treasury) shares issued and outstanding as of 

March 31, 2012 and December 31, 2011, respectively

118

117

Additional paid-in capital

2,637,861

2,617,355

Accumulated other comprehensive loss

1,814

(429)

Distributions in excess of net income

(479,994)

(461,498)

Common shares in treasury, at cost, 1,249,909 shares as of

March 31, 2012 and December 31, 2011

(51,951)

(51,951)

Total shareholders' equity

2,107,848

2,103,594

Noncontrolling interest - operating partnership

3,808,746 common units outstanding as of March 31, 2012 

  and December 31, 2011

63,920

64,428

5,290,000 and 9,740,000 preferred units outstanding as of March 31, 2012 

  and December 31, 2011, respectively

163,226

287,959

Noncontrolling interest - consolidated joint ventures

3,775

3,775

Total equity

2,338,769

2,459,756

Total liabilities, noncontrolling interest - operating partnership & equity

$                      5,015,294

$                      4,989,673