Quote of the Day- "From the House's Mouth"
"Institutional investors – many of them foreign… seem to be thinking that if Moody’s and Standard & Poor’s have done such a lousy job of rating subprime structures, how can the market have confidence that they’re not repeating the same structural, formulaic, mistake with CLOs and CDOs? That growing lack of confidence… has frozen future lending and backed up the market for high yield new issues such that it resembles a constipated owl: absolutely nothing is moving." – Bill Gross, Manager of the PIMCO Bonds Fund. (PIMCO.com Newsletter, August, 2007)
Real Estate Sales and House Prices
- Mass. Home Sales Fall In June (Boston Globe, July 24th): "Home sales in Massachusetts tumbled as much as 8% in June, and prices also dropped… virtually ensuring that 2007 is going to be another down year in the industry… June is a key month because deals struck in the spring are usually closed then. Warren Group reported Monday that home sales in June dropped 8.3% from June 2006, and prices fell 4.6%, with the median home price at $334,000. Separately, the Massachusetts Association of Realtors reported sales fell 6%, to 4,959 closings last month, compared with 5,276 in June 2006, while the median single family home price fell 1.6%, to $364,000."
- Dedham, Norwood Home Sales Slump (Daily News Transcript, July 24th) Norwood, Massachusetts: "Warren Group: Sales from January-June in Dedham and Norwood were the lowest during that period - as well as for the month of June itself - since 2003. Sales in Dedham were down 15% during January-June 2007 and in Norwood they were down 4%. Both towns saw a modest drop in the number of single-family homes sold, but Dedham also saw a 40% drop in condo sales. In Westwood, total sales were up 6% for the first half of 2007 compared with the first half of 2006. Walpole saw sales rise by 5% during the same period."
- Area Home Sales Down 17 Percent (Charlottesville Weekly, July 24th): "Charlottesville Area Association of Realtors: Mid-year sales in Charlottesville, Albemarle and surrounding counties decreased to 1,882 from 2,267 homes sold at this time last year. [Though] we're still in a buyer's market… the real estate pendulum is ever so gently swinging back towards the center… Charlottesville saw a $43,000 jump (18%) in mid-year median sales prices to $280,000, its biggest in five years after a $3,500 drop last year. Impressive, sure—until you factor in the spike of lower-priced condo sales in 2006 that helped keep the median price low… Median prices in Albemarle… dropped $15,000 to $310,500."
- Live from Domino Sugar: 'New Domino' Detailed (Curbed, July 24th): "Developers of the Domino Sugar Refinery site on the Williamsburg waterfront [unveiled] their development plan, which calls for 2,200 apartment and the preservation of the original refinery building… Timeline-wise, developers hope for land use review by this fall or early winter, with groundbreaking slated for late 2008 or early 2009. The project, budgeted at a mind-boggling $1.2-$1.3 billion, will take six to eight years to build out… the 11.2 acre site will feature four acres of open space, and 120,000-sf of retail space—including some sort of food store. About 100,000-sf will be set aside for community use."
- Subprime Fallout Touches Commercial Real Estate (Las Cruces Sun, July 23rd): "Las Cruces, New Mexico lenders are back to the days of the 10% rule for rental real estate: The annual net operating income from the property should be approximately 10% of the purchase price… Bret Moody, with First Federal Bank: "[Currently there's] a 7.4 month supply of new and resale homes priced between $100,000-$200,000, an annual high. For homes priced in the $200K to $300K range Las Cruces has an 11-month supply, which is better than Q1'07, but worse than Q2'07. Inventory in this price range is up 47% since the end of last year. We have a 12+ month supply of houses priced over $300,000."
Real Estate Investing and Sentiment
- Land Trust Helps Keep Home Prices Low (Seattle PI, July 23rd): "Homestead Community Land Trust, [is] a Seattle non-profit that… seeks to make homes permanently affordable to moderate-income residents by helping buyers buy and then controlling the price of subsequent sales… To be eligible, Homestead buyers must make no more than 80% of the county median income; a single buyer could make up to $41,700 and a family of four, up to $59,600. The organization provides up to $100,000 in grants… then keeps the title to the land, but not the house, charging homeowners $35 a month under a 99-year land lease. When it comes time to sell, Homestead figures out how much more the home is worth, then allows the owner to add a share of that to the original price, based on how much they paid in the first place and how long they lived there."
Mortgates and Real Estate Lending
- Financials: After the Fall, Some Look Undervalued (Business Week, July 25th): "Some experts think that large diversified banks are a safer bet than the brokers and investment banks that are feeling the pain both from [subprime] worries… and tightening credit spreads. Banks such as Citigroup (NYSE:C), Bank of America (NYSE:BAC), and JP Morgan Chase (NYSE:JPM) are prized for… their [large] balance sheets and diversified revenue streams… Some analysts see buying opportunities among… brokers and investment banks. Sandler O'Neill Partners: Credit concerns are likely to [rattle] brokerage stocks over the next 4-6 weeks, but do not signal an end for the bull market in mergers and acquisitions and leveraged buyout activity."
- The Short Case On Fannie Mae (Daniel Jones in Seeking Alpha, July 23rd): "Due to [poor] internal financial controls… and bad earnings reports…We believe the June / July rounding top is the likely top in Fannie Mae (FNM) for the next 12 months or so [and] shares could trade down to the $54 - $55 level (or below) within the next six months as interest rates head higher and FNM continues to miss its earnings projections. We recommend… buying the FNM August 2007 and January 2008 $65 strike price puts, which are currently at $2.70 and $5.40, respectively. We would exit those puts when the stock reaches a $55 or lower price point, or when the puts are trading at $10 apiece."
- Bank of America Adds John Perkins For Real Estate Investment Banking (Bank of America Press Release, July 23rd): "Bank of America (BAC) announced Monday that John Perkins will join its market leading Real Estate Investment Banking Group in September as a managing director with senior client coverage responsibility. Perkins will be based in New York and will report to Ron Sturzenegger, Global Head of the Real Estate Investment Banking Group."
- Florida Real Estate Impacts Whitney Earnings (Tampa Bay Business Journal, July 24th): "Whitney Holding Corp. (NASDAQ:WTNY) posted net income of $35.1 million, or $0.51/share, in Q2, vs. net income of $39.4m, or $0.60/share, in Q2'06… Whitney's total loans at the end of Q2'07 were up 7%, or $508m, from Q2'06, largely supported by economic and market conditions in Texas, Alabama and the Louisiana market outside of metro New Orleans. Whitney announced: "A decrease of approximately $100m in loans serviced from Florida operations was not unexpected in light of market conditions that are restraining the pace of new real estate project financing in Florida. Total deposits at June 30 were down 1%, or $111m, vs. a year earlier."
- Wells Fargo Boosts Dividend (The Street, July 24th): "Wells Fargo (NYSE:WFC) boosted its quarterly dividend by 11% late Tuesday as the big bank seeks to shore up the swooning financial sector. The San Francisco bank raised its quarterly payout to $0.31 from $0.28, payable Sept. 1 to shareholders of record Aug. 10. The dividend announcement comes on a day when financial stocks accelerated their recent decline following more bad news in the mortgage sector."
- National CEO Backs Mortgages Strategy (Forbes, July 23rd): "With the sale of its subprime unit behind it, National City (NCC) is prepared to focus on its traditional mortgage business and plans for expansion. CEO Peter Raskind: "We are fully committed to that business and continue to remain in it and invest in it. Raskind replaced David Daberko as CEO. Last year, National City sold much of its subprime business when Merrill Lynch (MER) bought First Franklin Financial Corp. (NASDAQ:FFHS). The sale happened a few months before borrowers with spotty credit histories and higher-risk subprime mortgages began running into serious problems as interest rates climbed."
- Subprime Loan Alternatives (CNN Money, July 24th): "FHA loans with low interest rates can be approved with low down payments. Adjustable rate mortgages (ARMs) [that] reset yearly at no more than 1% higher than the original rate, and can rise no more than 5% above the original rate [are available].… The Veteran's Affairs loan… borrower has to be a veteran or the surviving spouse of [a serviceman] Loans are available for up to 100% of the purchase price… A 30-year fixed carries about the same rate as a normal prime rate loan, currently about 6.75%… The Community Reinvestment Act [CRA] loan requires banks starting business in a new area to help meet the credit needs of the entire community. That translates into loans to low and moderate income borrowers… Borrowers with credit scores of 600 can qualify for these loans. And you don't necessarily have to buy in a low-income area to be eligible."
- Subprime Woes Hit Junk Bonds – Gross (CNN Money, July 24th): "Bill Gross, manager of PIMCO, the world's largest bond fund: Woes plaguing the subprime mortgage market are spreading to junk bonds. Credit markets are facing a "sudden liquidity crisis" in the high-yield bond sector as a growing lack of confidence has frozen future lending… Gross expects corporate lenders to feel a pinch from subprime housing defaults, [and] the U.S. economy overall [will] take a hit as cheap financing gets harder to come by, affecting company buyouts and stock buybacks. Junk bonds plummeted Tuesday following Gross's statement, and Wall Street firms postponed a $3.1 billion debt sale to pay for the leveraged buyout of General Motors' (NYSE:GE) Allison Transmission unit."
- Pacific Premier Bancorp, Inc. Announces Second Quarter and Year-to-Date Results (CNN Money, July 24th): "Pacific Premier Bancorp, (NASDAQ:PPBI) the holding company of Pacific Premier Bank, recorded Q2 net income of $1.2 million, or $0.18/share, compared to $2.9m, or $0.43/share, for Q2'06, a decrease of 58.1%... The provision for loan losses was $215,000 and $514,000 for the three and six months ended June 30, 2007, respectively, compared to $104,000 and $103,000 for the same periods in 2006. The increase in the provision for the six months ended June 30, 2007 compared to the same period in 2006 is primarily due to the transitioning of the Bank's loan portfolio to include more commercial real estate and business loans and less multi-family loans."
- Subprime Jumps the Fire Line - Again (Jim Kingsland in Seeking Alpha, July 23rd): "The new ABX BBB- 07-2 , which only started trading on Thursday, finished down at 47-cents on the dollar on Friday… Corporate credit? The LCDX, which gauges risk in high yield corporate loans… slumped to 94.8 on Friday. The iTraxx LevX, the European version of LCDX, also slumped to the 96 level as loan worries have gone global. Credit default swaps?? Spreads have widened rapidly. The JP Morgan EMBI+ index of emerging market debt index? Spreads have widened there too… Flight to quality into U.S. Treasuries is generally not positive for U.S. stocks, so be careful."
- Defaults on Some 'Alt A' Loans Surpass Subprime Ones (Bloomberg, July 24th): "Citigroup analyst: Defaults on some so-called Alt-A mortgages [securitized] last year are now outpacing those from subprime loans. The three-month constant default rate for 2006 Alt-A hybrid adjustable-rate mortgages is 2.3%, compared with 2.2% for subprime ARMs. The figures represent the percentage of balances in a mortgage-bond pool expected to default in the next year based on 90-day trends. The speed at which Alt-A hybrid ARMs are being paid off due to home sales or refinancing has also fallen to about the same level as for subprime ARMs… More than $800 billion of subprime mortgage bonds and $700b of Alt-A bonds are outstanding."
- Default Notices Hit Highest Level For Quarter In 10 Years (Press Enterprise, July 24th): "DataQuick Information Systems: A total of 53,943 default notices were sent to homeowners between April-June, up 158% from 20,909 in Q2'06… The latest default figures represent a 15.4% increase since Q1, when 46,760 defaults notices were sent out statewide. The last time more default notices were recorded in the state was in Q4'96, when the figure reached 54,045. Defaults peaked in Q1'96 at 61,541. Many of the mortgage loans that went into default in Q2 were taken out between July 2005-August 2006."
- Lucas County Foreclosures Rates Rise (13ABC, July 23rd): "Lucas County numbers: In the first six months of 2006, there were nearly 2100 foreclosures. In the first six months of 2007, that number shot up by 51%. Statewide, there were nearly 39,000 foreclosures in the first half of 2006. In the same time period in 2007, that number went up by 56%.
- Number Of Foreclosures In Area Jumps (Durango Herald, July 24th) Colorado: "Ed Murray, county treasurer: As the real-estate market locally softens, the number of foreclosures in La Plata County for 2007 may double last year's rate. As of Monday, 44 homeowners from throughout the county have filed for foreclosure. For all of 2006 there were 50 homeowners who filed for foreclosures. At the current rate, the county is on track to see 80-100 foreclosures this year. Murray: "We're on line to see at least more than last year." Since 1990, foreclosures in La Plata County have reached a high of 80 (in 1990), to a low of 23 (1995)."
Global Impact and Alternatives To The Housing Slump
- Impressive Year For Country House Market (Adfero, July 25th) UK: "From April-June country house prices rose by an average of 3.3%, contributing to an annualised price growth of 11.6% for manor houses and 10.4% for all country houses. [In] Q2, the average price of a large spacious manor house with its own grounds and private drive is £3,126,000, compared to £2,801,000 during June last year. East Sussex county [saw] the largest price growth, with the last year seeing increases of 27.5%... Knight Frank: Overseas buyers accounted for 14% of all prime country house purchases. Europeans and Russians were found to be the most drawn to the UK."
- Jones Lang LaSalle Reports Record Second Quarter 2007; Net Income of $77.9 Million, $2.32 Per Share (PR Newswire, July 24th): "Jones Lang LaSalle (NYSE:JLL), the… global real estate services and money management firm, Tuesday reported Q2'07 record net income of $77.9 million, or $2.32/share of common stock, and net income of $105.2m, or $3.12/share, for year-to-date 2007. Q2'06, net income was $65.7m, or $1.94/share, with year-to-date net income of $70.3m, or $2.08/share. Revenue for Q2'07 was $676m, an increase of 33% compared with 2006, and $1.2 billion YTD, an increase of 38% over the prior year. Operating income for Q2'07 increased 20% to $101.0m from $84.3m a year ago, and on a YTD basis increased 48% to $137.4m."
- AMB Property Corporation(NYSE:R) Acquires 324,000 SF in Guadalajara, Mexico in Sale-Leaseback (Earthtimes.org, July 24th): "AMB Property Corporation (NYSE:AMB)… today announced it has expanded its presence in Guadalajara, Mexico with an acquisition of 324,000-sf. The three-building campus, named AMB Arbolada Distribution Center, was acquired in a sale-leaseback transaction and is fully leased to a leading German automotive parts supplier, developer and manufacturer of lighting technology and electronics for a 15-year term… AMB's Mexico portfolio is comprised of operating and development real estate in Guadalajara, Mexico City, Queretaro and Tijuana -- a portfolio totaling approximately 6.7 million-sf."
- Africa Israel Ventures Into Chinese Real Estate (YNET News, July 24th): "Africa Israel is in negotiation for a five-city real estate development deal in China… The deal includes dozens of real estate projects in five of China's major cities. The deal's size is estimated in hundreds of millions of dollars. Should the deal materialize, it would be Africa Israel's most massive introduction into any of the world's regions, exceeding even its activities in Russia… The company would also head development deals in Thailand, Vietnam and several other countries in east Asia… Africa Israel is expected to head four to eight projects in Asia by the end of 2007."
- House Prices Up 7.1% In 70 Major Chinese Cities (China View, July 24th): "National Development and Reform Commission in cooperation with the National Bureau of Statistics [reported Monday] that housing prices in 70 large-and medium-sized cities in China continued to rise in June, up 7.1% over June 2006. June prices of newly-built commercial housing units were up 7.4% y/y. The cities include Beijing, Shanghai, Tianjin, Shenzhen and Guangzhou. Low-cost housing prices rose 1.4% and expensive housing [rose] 8.5%... The housing prices in Beihai went up 15.5% and the prices in Shenzhen were up 13.9%. Prices of second-hand houses in those cities were up 7.8% last month over June 2006, and 1% higher than May."
Macro Impact, And Will The Housing Slump Cause A Recession?
- Enough is Enough (PIMCO Bonds Newsletter, August, 2007): "Managing Director Bill Gross: "Over the past few weeks… the mistrust of rating service ratings, the constipation of the new issue market and the liquidity to hedge the obvious in CDX markets has led to current high yield CDX spreads of 400 basis points or more and bank loan spreads of nearly 300. The market in the U.S. seems to be looking towards this week’s large and significant placing/pricing of the Chrysler Finance and Chrysler auto deals to determine what the new level for debt should be... Those that assert that this is merely an isolated subprime crisis should observe very closely the price and terms that lenders are willing to accept with Chrysler finance this week."
Homebuilders And Housing Stocks
- GE: Bringing Good Things Back to Life (Hilary Kramer in Seeking Alpha, July 25th): "GE's success has resulted in large part from a continuing boom in global infrastructure needs, and all its divisions have been doing well of late except NBC and its health-care sector. The company has benefited from global trends, but CEO Jeffrey Immelt continues to make improvements, from investing in a major buyback program of $14 billion to getting out of the plastics business to, most recently, announcing GE would exit the subprime mortgage industry. GE's subprime division, WMC Mortgage, was a tiny part of the company, but Immelt was smart to avoid losing any more money, and to avoid the kind of negative publicity that has hit firms like Bear Stearns that are deeply involved in that failing industry… With the market coming back to the large caps, and no sign of slowing in India or China, this is a company to buy and hold for a long time."
- Housing Crunch Sends USG Profits Down 68% (Chicago Tribune, July 24th): "USG Corp. (NYSE:USG), the leading producer of gypsum wallboard used extensively in home construction, was squeezed by the U.S. housing sector's continuing dropoff. USG reported Tuesday a 68% plunge in Q2 earnings, on sales that dropped 10.5%… USG's net income dropped to $56 million, or $0.56/share, from Q2'06s hefty $176m, or $3.03/share on fewer shares… Combined with earlier cutbacks in hourly staffing, USG has cut more than 1,100 jobs over the past twelve months. It has cut back its output, and will shut down an additional 350 million-sf of wallboard capacity at its Detroit facilities in Q3."
- Corus Bankshares: A Little-Known Bank Making Big Strides (Eddy Elfenbein in Seeking Alpha, July 24th): "For Q2, Corus Bankshares (CORS) netted $0.74/share, which is a big drop off from the $0.82/share it made last year. The culprit, naturally, was the real estate market in places like Florida. But here’s the interesting part: Wall Street was expecting much worse. The average of the three analysts was for $0.61/share. I don’t mean this as any hyper-sophisticated analysis of the real estate market. It’s just interesting to note that even experts are having difficulty seeing the magnitude of the housing mess. Perhaps it’s not as bad as it looks."
- M.D.C. Holdings Declares Quarterly Cash Dividend (CNN Money, July 24th): "M.D.C. Holdings (NYSE:MDC), Inc. Tuesday announced [a] quarterly cash dividend of $.25/share… MDC, whose subsidiaries build homes under the name "Richmond American Homes," is one of the top ten homebuilders in the US, based on 2006 revenue. The Company also provides mortgage financing, primarily for MDC's homebuyers, through its wholly-owned subsidiary HomeAmerican Mortgage Corporation. MDC, a Fortune 500 Company, is a major regional homebuilder with a significant presence in Colorado, Jacksonville, Las Vegas, Maryland, Northern California, Northern Virginia, Phoenix, Salt Lake City, Southern California and Tucson."
- Buy Home Depot While It's on Sale (Barron's July 24th): "At its current valuation, Home Depot (NYSE:HD) offers a compelling opportunity for patient investors. The company's shares could even double in value in the next three years, thanks to a mammoth corporate stock-repurchase campaign, store upgrades, and cash flow and profits starting to grow again… Stifel Nicolaus & Co.: "We think the stock is undervalued… The fundamental strength of the home-improvement market remains strong." Thomson Financial: Raymond James analyst: Next year, same-store sales should rise and profits could climb 21% to $2.88/share. And from fiscal 2007-2010, the retailer's operating cash flow could exceed $30 billion. This cash flow will fund future capital investments, stock buybacks and dividend payments."
- Pro-Pedestrian Jersey Project Nears Completion (The Real Deal, July 24th): "A new mixed-use development that aims to transform a New Jersey suburb into a pedestrian friendly enclave has started attracting its first residents. Millennium Homes is close to finishing the Mews, the developer's first project in Garwood, which consists of 40 apartments, 44 age-restricted adult townhomes and 21,000-sf of retail space on the town's main drag. Lisa Macchi, executive VP of Millennium, said the first families are starting to move in and that a Washington Mutual (NYSE:WM) has opened a retail branch. A printing shop, upscale spa and wine bar have also signed leases at the development"
- Home Depot Hiring: Retailer To Recruit At Job Fair Wednesday (Santa Cruz Sentinel, July 13th): "Home Depot (HD) is looking to fill 30-40 job openings for its new store in Soquel slated to open Aug. 23… The new home-improvement store, a two-story building under construction at 2600 41st. Ave., will have 160 employees. [Company reps] said the open positions are in sales, particularly in special order items such as cabinetry, flooring and kitchens. Other positions are open in operations and receiving… HD, which replaces a smaller K-Mart, is part of Redwood Square, a $20 million-plus makeover of a 17-acre shopping center."
- Owens Corning Agrees to Sell Its Sidings Business (Net Composites, July 23rd): "Owens Corning (NYSE:OC) has reached a definitive agreement to sell its Siding Solutions business to Saint-Gobain for $371 million. The sale includes the company's Norandex/Reynolds distribution business with 153 U.S. distribution centers in 38 states. Three vinyl siding manufacturing facilities in North America located in Claremont, N.C.; Joplin, Mo.; and London, Ontario are also part of the transaction. CEO Dave Brown: "This divestiture is one of several actions we are taking across our company to increase our ability to generate consistent profitable growth that will drive shareholder value."
Commercial Real Estate and REITs
- SL Green's 2Q Results Top Estimates (Forbes, July 24th): "Late Monday, Office REIT SL Green Realty Corp. (NYSE:SLG) said Q2 funds from operations, or FFO, rose to $79.5 million, or $1.26/share, from $57.2m, or $1.22/share, in Q2'06. Analysts… expected FFO of $1.12/share. FFO… is considered a key measure of REIT strength. Quarterly net income surged to $265.9m from $29.1m in Q2'06 on $241.9m in gains from property sales. Revenue in Q2 more than doubled to $257.7m from $123.6m in Q2'06… The REIT signed 66 Manhattan office leases during Q2, capitalizing on the 40.5% increase in rents there... SL Green's Manhattan portfolio finished Q2 with 97.6% occupancy, up from 97.3% in Q2'06."
- Boston Properties, Inc. Announces Second Quarter 2007 Results (CNN Money, July 24th): "Boston Properties, Inc. REIT (NYSE:BXP) reported results today for Q2'07. Funds from Operations (FFO) for Q2 were $142.9 million, or $1.20/share basic and $1.18/share diluted. This compares to FFO for Q2'06 of $129.4m, or $1.14/share basic and $1.10/share diluted, after a supplemental adjustment to exclude the loss from early extinguishment of debt associated with the sale of real estate…totaling $0.24/share basic and $0.22/share diluted for Q2'06. The weighted average number of basic and diluted shares outstanding totaled 118,961,276 and 122,660,356, respectively, for Q2'07 and 113,993,783 and 120,605,194, respectively, for Q2'06."
- Third Avenue Real Estate Value Looks Abroad (Kiplinger.com, July 24th): "From [being] a mostly domestic[-centric] fund, Third Avenue Real Estate Value (MUTF:TAREX) has been filling up with [properties] such as Henderson Land Development, Wharf Holdings, Hang Lung Properties and Mitsubishi Estate. Third Avenue still has 60% of assets in U.S. stocks, but some of its biggest domestic holdings are worldwide developers and investors, such as ProLogis (NYSE:PLD), which owns a slew of FedEx and DHL warehouses on the outskirts of every big airport on earth. TAREX remains upbeat about U.S. land and development stocks, Forest City Enterprises (FCEA) and St. Joe (NYSE:JOE), as well as a company to the north, Toronto-based Brookfield Asset Management (NYSE:BAM)."
- Health Care REIT, Inc. Declares Second Quarter Dividend (Business Wire, July 24th): "Health Care REIT, Inc. (NYSE:HCN) announced a dividend for Q2'07 of $0.66/share as compared to the prior year rate of $0.64/share. The dividend will be the company's 145th consecutive quarterly payment… Health Care REIT, Inc., with headquarters in Toledo, Ohio, is a self-administered, equity REIT that invests across the full spectrum of senior housing and health care real estate, including independent living/continuing care retirement communities, assisted living facilities, skilled nursing facilities, hospitals, long-term acute care hospitals and medical office buildings."
- Developers Diversified Second-Qtr FFO Rises (Reuters, July 24th): "Developers Diversified Realty Corp (NYSE:DDR), owner and manager of shopping centers, said on Tuesday quarterly funds from operations rose 45%, chiefly on its purchase of Inland Retail REIT. Developers Diversified, which owns shopping centers dominated by big box and discount department stores, reported Q2 FFO available to shareholders… of $159.3 million, or $1.26/share, versus $109.8m, or $0.99/share. The most recent quarter's result beat analysts' average estimate calling for FFO of $1.17/share, according to Reuters Estimates."
- Liberty Property to Acquire Republic Property Trust (Reuters, July 24th): "Liberty Property Trust (LRY) said it agreed to acquire Republic Property Trust (RPB) for $435 million in cash to enter the office market in the Washington D.C. area. The $14.70/share offer was 28% more than Republic's closing share price on July 23. Liberty Property, which owns, develops and manages industrial and office properties in the USs and Britain, said with the aquisition, it would own "a very high quality portfolio in one of the premier U.S. office markets." After the deal, Liberty will own 2.6 million sf of office properties in the Greater Washington D.C. area."
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