Heavy charge leads to loss for Liberty Property Trust in 4th quarter, sees encouraging signs

Liberty Property Trust reports 4Q loss

MALVERN, Pa. — Liberty Property Trust, which owns office and industrial properties, reported a loss for the fourth quarter as a hefty charge dragged down results. The company said it saw “encouraging” signs in the industrial sector, however, and believes the market has bottomed.

“At the end of the year we saw a marked increase in the number and quality of industrial prospects, coupled with renewed willingness on the part of companies to make commitments, in both the office and industrial sectors,” said CEO Bill Hankowsky. “We are beginning to see very gradual recovery in the industrial sector, and we may see similar positive signs in the office sector in the second half of this year should the nation’s employment situation improve.”

The real estate investment trust said funds from operations, or FFO, totaled a loss of $16 million, or 14 cents per share, compared with a profit of $80.9 million, or 80 cents per share, in the fourth quarter of 2008.

FFO, which adds items such as amortization and depreciation back to net income, is considered a key measure of REIT strength. Excluding a $94.5 million charge to write down the value of some of the company’s joint venture investments, Liberty would have booked FFO of 67 cents per share in the latest period.

That was in line with the average estimate of analysts surveyed by Thomson Reuters.

Total operating revenue edged up to $187.6 million in the three-month period ended Dec. 31, from $184.8 million a year earlier.

For the quarter, Liberty reported a loss of $52 million compared with earnings of $51.8 million in the year-ago period.

For the full year, Liberty reported FFO of $222.1 million, or $1.98 per share, down from $313.9 million, or $3.20 per share, in 2008. Net income felll to $56.4 million from $151.9 million due to hefty charges, though operating revenue improved to $744.3 million from $731.4 million the year before.

Shares closed down 38 cents at $28.75 Tuesday.