Liberty's Q1 Income Rises; Penn National Hits Record

"Real estate conditions are still not optimal, but are improving at a very slow pace," says Bill Hankowsky, Liberty's CEO, in reporting that net income rose to $.52 per common share during the first quarter, compared with $.45 per share in the same quarter a year ago. The increase was primarily due to gains on the sale of two properties for $29.3 million and a little over $5 million from the REIT's 25% share in a jointly owned asset.

Liberty's first-quarter performance reflected market conditions, Hankowsky says, adding, "Our development pipeline has grown significantly." Leasing at the company's 62-million-sf in-service portfolio slipped a bit during the quarter, dropping to 91.3% occupancy from 91.9% at the end of 2004. Operating income from same store properties also declined by 0.4% on a cash basis and 0.9% on a straight line basis, compared with first-quarter 2004.

Meanwhile, Peter M. Carlino, Penn National's CEO, reported net revenues of $289.3 million in first quarter, up from $285.1 million in the same quarter a year ago and announced progress on several growth initiatives. He expects to obtain a license from the state gaming control board late this year for a new gaming and racing facility in Harrisburg.

Also by the end of this year, the company expects to have 475 slots operational in a temporary facility in Bangor, ME prior to completion of a permanent facility there. It acquired an off-track betting location there for $3.8 million in order to take early advantage of anticipated regulatory approvals for slots this summer.

These are in addition to Penn National's pending acquisition of Argosy Gaming Co., which Carlino says is expected to close this third quarter. Along with Argosy's existing seven assets comes its plan "for expansion of the nation's biggest revenue-generating riverboat to accommodate up to 4,000 slot machines from the current 2,800," according to Carlino. The Argosy riverboat property is in Lawrenceburg, IN, "the nearest gaming facility to the Cincinnati feeder market."