Occupancy in Liberty's 52-million-sf portfolio rose to 91.2% in the secondquarter of this year, up from 89% in the previous quarter, but down from92.5% in second-quarter 2002. At mid-year 2003, the REIT has 731,148 sf underdevelopment, representing a total investment of $80.8 million. Theproperties under development are 81% leased.
They include a 74,168-sf office building in Fort Washington, PA, which is57% leased to URS Corp., a global construction and engineering firm, and an87,500-sf office property in Milwaukee, which is 94% leased to eFunds Corp.This represents an expansion for eFunds, a provider of electronic funds transfer services, which is also a tenant in another Liberty property in MN.
The 252,193-sf building in Allentown, PA, developed by Liberty toheadquarter a division of PPL Corp., came into service during this year's secondquarter. It is 85.3% occupied and, according to Hankowsky, is providing in excess ofan 11% return on the REIT's $69.7-million investment.
Second-quarter funds from operations decreased to $.81, compared with $.85in the same quarter a year ago. Lease termination fees totaling $2.3 millionare included in this year's second-quarter revenues. An administration expenseof $1.9 million is also included in the June 30 report, due to an acceleratedvesting of $1.9 million in restricted stock and options, necessitated byformer chairman Willard Rouse III's death.
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