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PS Business Parks (PSB) Q1 FFO Up Y/Y on Rental Rate Growth

PS Business Parks, Inc. PSB reported first-quarter 2020 core funds from operations (FFO) per share of $1.72. The figure increased 2.5% year over year.   

Results highlight improvement in same-park net operating income (NOI), aided by growth in rental rates, as well as higher NOI from non-same-park and multi-family assets.

Rental income came in at $106.2 million, displaying a decline of 1.5% from the year-ago quarter’s $107.8 million.

Additionally, the company informed that it has collected about 88% of its average total rental receipts for April. This comprised 85%, 87% and 97% collection for industrial, flex and office spaces, respectively.

Quarter in Detail

Same-park rental income was up 3.3% year over year to about $98 million, while same-park NOI climbed 4.7% to $69.8 million on improving rental rates.

Same-park annualized revenue per occupied-square-foot increased 5.4% to $16.42. However, weighted average square-foot occupancy shrunk 190 basis points year on year to 92.9%.

Portfolio Activity

On Jan 7, PS Business Parks completed the sale of Metro Park IV. This is a single-tenant building spanning 113,000 square feet in Montgomery County, MD. The building was sold for $30 million.

Further, on Jan 10, the company acquired a muti-tenant industrial park, La Mirada Commerce Center, comprising roughly 73,000 rentable square feet in La Mirada, CA, for $13.4 million.

Liquidity

PS Business Parks exited first-quarter 2020 with cash and cash equivalents of $87.8 million, up from the $62.8 million reported at the end of 2019.

Dividend Update

On Apr 22, the company anounced a quarterly dividend of $1.05 per common share. This dividend will be paid on Jun 30, to shareholders of record as of Jun 15, 2020.

PS Business Parks currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

PS Business Parks, Inc. Price, Consensus and EPS Surprise

PS Business Parks, Inc. Price, Consensus and EPS Surprise

PS Business Parks, Inc. price-consensus-eps-surprise-chart | PS Business Parks, Inc. Quote

We, now, look forward to the earnings releases of other REITs, Omega Healthcare Investors, Inc. OHI, Vornado Realty Trust VNO and Realty Income Corporation O. All three companies are scheduled to release their quarterly numbers on May 4.

Note: Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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