As part of its effort to enhance its share of flex space in
the Valwood submarket of Dallas, Texas,
PS Business Parks Inc.
) acquired nine multi-tenant flex buildings. The company shelled
out $12.4 million for the acquisition of these properties that
span 245,000 square feet of space.
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Currently 83.5% leased, these properties are advantageously
located close to the parks, which are owned by the company and
have an average tenant size of 6,400 square feet of space.
Moreover, earlier in the fourth quarter, PS Business Parks bought
four multi-tenant flex parks with a 4-acre land parcel in Dallas,
Texas. The assets, aggregating 559,000 square feet, were acquired
for $27.9 million. The buyout included the purchase of 303,000
square feet of space in Valwood submarket, which made PS Business
Parks the submarket's largest owner of flex space. Furthermore,
the most recent acquisition enhanced the company's flex space in
the Valwood submarket to 548,000 square feet.
PS Business Parks' portfolio in diversified markets enables it to
tap opportunities and defuse operating risks associated with the
economic down cycles. The company aims to capitalize on
opportunities present in both existing and new high growth
markets through accretive acquisitions. Therefore, we believe
that the current acquisitions would help improve growth metrics,
enabling the company to emerge stronger once the real estate
markets fully recover.
Last month, PS Business Parks reported its third-quarter 2013
results with adjusted FFO (fund from operations) per share of
$1.21, beating the Zacks Consensus Estimate by a penny and the
year-ago quarter figure by 2 cents. An uptick in net operating
income in Same Park as well as Non-Same Park facilities aided the
PS Business Parks, in which
) possesses a notable common equity interest, currently has a
Zacks Rank #3 (Hold). Two other REIT stocks that are performing
well and deserve a look are
Cousins Properties Inc.
), which carry a Zacks Rank #2 (Buy).
FFO, a widely used metric to gauge the performance of REITs,
is obtained after adding depreciation and amortization and other
non-cash expenses to net income.