Liberty Obtains New Credit Facility - Analyst Blog

Liberty Property Trust (LRY), a leading real estate investment trust (REIT), has recently obtained a new $500 million unsecured revolving credit facility due November 2013 that replaced its existing $600 million credit facility scheduled to mature in January 2011. The new facility also contains an accordion feature that allows Liberty Property to increase its credit facility amount up to $750 million.

 

The borrowings under the new credit facility will bear interest at LIBOR plus 230 basis points. Liberty Property has historically maintained a conservative balance sheet and pursues a strategy of financial flexibility that enables it to offer a steady dividend to the shareholders. The new credit facility also optimizes the borrowing capabilities of the company in accordance with the current capital plan.

 

Based in Pennsylvania, Liberty Property provides leasing, property management, development, construction management, design management, and related services for a portfolio of industrial and office properties. The company focuses primarily on prime suburban properties in the Southeast, Mid-Atlantic, and Midwest regions of the U.S. In addition, Liberty Property also owns certain assets in the U.K.

 

Liberty Property’s assets are designed to accommodate various types of tenants and space requirements. The company specifically focuses on metro-office, multi-tenant industrial and flex properties and markets that have strong demographic and economic fundamentals, ensuring a steady revenue stream for the company.

 

Furthermore, Liberty Property operates in multiple markets that enable it to mitigate geographical risk. In each of these markets, the company offers an appropriate mix of office and industrial properties. The company is also repositioning its portfolio as it intends to focus on higher growth markets characterized by better job and rent growth prospects. The current rating on Liberty Property is “Neutral” with a Zacks #3 Rank, which translates into a short-term ‘Hold’ recommendation.