Issuing 2017 guidance last night, the company expects to slash its quarterly dividend nearly 20% beginning with the Q1 payment as the fast disposition and repositioning strategy catches up to earnings.
Sandler O'Neill's Alexander Goldfarb downgrades to Sell with $37 price target, suggesting nearly 9% downside from yesterday's close.
Thanks to cumulative impact of sizable asset sales this year (and previous years), Liberty Property Trust (NYSE:LPT) expects the quarterly dividend to be cut to $0.40 per share from $0.475, starting with the Q1 payment in April 2017.
Management anticipates that dispositions in 2017 will return to a normal level of about $200-$350M, with proceeds used to fund new property investments.
Full-year 2017 FFO is seen at $2.40-$2.52 per share vs. the 2016 expectation of $2.36-$2.38.
The P-E giant has agreed to buy a portfolio of mostly West Coast logistics centers from LBA Realty for $1.5B, reports the WSJ.
In the age of Amazon.com logistics is the hottest part of the commercial property sector, with prices for distribution centers and such still on the rise even as those for things like office buildings and malls show signs of cooling.
"Distribution used to be just another part of the supply chain. Now logistics has moved up in its importance in corporate strategy," says Charles Sullivan of Global Logistics Properties.
Q2 FFO of $102.2M or $0.68 per share vs. $103M and $0.67 one year ago. This year's result included a $0.02 per share gain on debt forgiveness. Dividend is $0.47.
Same-store operating income up 2.6% on a cash basis and 2.2% on a straight-line basis Y/Y.
There were some minor sales during quarter, but the company earlier this week announced the sale of a 108-building portfolio of non-core suburban properties for $969M. Proceeds will be used to pay down debt, and the company expects to take a Q4 charge of up to $0.20 per share on the early extinguishment of debt.
The dividend isn't expected to be affected in the short-term, but the sales may force a cut next year.
Full-year FFO per share outlook of $2.30-$2.40 vs. previous of $2.35-$2.55.
Consistent with the company's plan to sell about $1B of non-core suburban properties this year, LIberty Property Trust (NYSE:LPT) has agreed to sell to Workspace Property Trust 108 properties for $969M. The properties total about 7.6M square feet of leasable space, and are located in five markets. There's also 26.7 acres of land in two markets.
Sale includes 30 properties in PA, 34 in FL, 19 in MN, 14 in AZ, and 11 in South Florida.