Liberty Property Trust LPT reported first-quarter 2016 funds from operations (“FFO”) of 62 cents per share, which beat the Zacks Consensus Estimate by a penny. Results reflect growth in same-store operating income for the industrial distribution portfolio. Following the earnings release, the stock gained 0.7% in the regular session.However, the figure decreased from 70 cents in the prior-year quarter. Also, total operating revenue of around $190.1 million was down 8.1% year over year and missed the Zacks Consensus Estimate of $199 million.Quarter in DetailDuring the reported quarter, Liberty Property accomplished lease deals for 5.4 million square feet. As of Mar 31, 2016, occupancy at the company’s in-service portfolio – spanning 103 million square feet – rose 10 basis points (bps) sequentially to 93.8%.Same-store properties’ operating income increased 3.4% year over year on a cash basis and 2.1% on a straight-line basis. Industrial distribution rents climbed 12.2% while same-store operating income for the industrial distribution portfolio increased 6.7%.Liberty Property exited first-quarter 2016 with cash and cash equivalents of nearly $43.7 million, up from $35.4 million at the end of the prior year. The company also repurchased 1.4 million shares for $40.9 million at an average price of $29.28 per share.Portfolio ActivityDuring the quarter, Liberty began development of two distribution properties, aggregating 218,000 square feet of leasable space, in West Palm Beach, FL at a projected investment of $24.3 million.Five development properties were brought into service during the first quarter for a total investment of $94.5 million. Comprising 716,000 square feet of leasable space, the properties were 59.9% occupied as of the quarter end.Further, during the first quarter, Liberty purchased one industrial property, comprising 73,000 square feet of space in the O’Hare submarket of Chicago for $8.0 million. On the other hand, the company sold eight operating properties, containing 849,000 square feet of leasable space and 3.5 acres of land for $131.1 million. Moreover, a joint venture in which the company holds a 25% stake sold off seven properties comprising 1,050,000 square feet of leasable space, for $146.6 million.Notably, Liberty had earlier revealed its plan to sell around $900 million to $1.2 billion of non-core suburban office and flex properties in 2016 and disclosed that it is in talks with a prospective purchaser for the sale of a large portfolio of suburban assets. That is still in the discussion stage and a binding sale agreement has not yet been reached.Our TakeLiberty Property’s efforts toward leveraging development opportunities and strategic dispositions are expected to enhance its overall portfolio quality. However, adverse near-term impact on earnings from dispositions and an anticipated rise in interest rate remain as concerns.Currently, Liberty Property carries a Zacks Rank #4 (Sell).We now look forward to the earnings releases of Essex Property Trust Inc. ESS, Apartment Investment and Management Company AIV, and DDR Corp. DDR which are scheduled this week.Note: FFO, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation and amortization and other non-cash expenses to net income.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report DDR CORP (DDR): Free Stock Analysis Report APARTMENT INVT (AIV): Free Stock Analysis Report ESSEX PPTY TR (ESS): Free Stock Analysis Report LIBERTY PPTY TR (LPT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research