Liberty cuts dividend, affirms guidance

Liberty Property Trust on Monday said its has cut its dividend in a move aimed at boosting the commercial real estate operator's cash flow.

The company said its board of directors declared a new dividend of 47.5 cents per share, or $1.90 a year. That's lower than the previous dividend of 62.5 cents per share, or $2.50 a year. The dividend is payable Jan. 15 to shareholders of record Jan. 1.

Liberty projects the move will generate about $60 million in additional cash annually.

The Malvern, Pa., company said it will use the cash to pay down debt on its line of credit.

"It is clear that the continued unprecedented disruption of the capital markets and the accelerating decline of the economy are increasing the value of financial flexibility almost on a daily basis," Bill Hankowsky, the company's chairman and chief executive, said in a statement.

Liberty affirmed its guidance for 2008 and 2009.

The company projects it 2008 funds from operations, or FFO, will be between $3.14 and $3.16 per share. For 2009, it projects FFO will be between $3 and $3.20 per share.

Liberty shares added 37 cents, or about 2 percent, to $19.22 in afternoon trading Monday. The company's shares have traded between $17.69 and $44.62 during the past year.