Liberty Property cuts divided by 24%

Liberty Property Trust said today that it will cut its dividend by 24 percent to boost its available cash.

Reducing the annualized dividend to $1.90 a share from $2.50 should enhance free cash flow by about $60 million a year, the Malvern-based real estate developer said in a statement.

The $0.475 dividend will be paid Jan. 15. The dividend has not been as low since the company was paying $0.45 a share in 1999.

The money will be used mostly to reduce outstanding debt, said the company, which has 74 million square feet of office and industrial space in more than 20 markets throughout the United States and the United Kingdom.

"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," chief executive Bill Hankowsky said in a statement.

Separately, Liberty affirmed its outlook for funds from operations, a common measure of REIT profitability. The company said it still expects funds from operations this year in the range of $3.14 to $3.16 a share, and between $3 and $3.20 a share for 2009.

Shares were trading up 3.02 percent ($0.57) at $19.42 soon after trading opened this morning on the New York Stock Exchange.