We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PS Business Parks (PSB) Closes Royal Tech Business Park Sale
Read MoreHide Full Article
PS Business Parks, Inc. completed the sale of the remaining 12 buildings in the Royal Tech Business Park, Irving, TX for a gross sales price of $93.0 million. The move comes as part of PS Business Parks’ focused strategy to decrease its ownership of office and office-oriented flex properties.
The Royal Tech Business Park originally aggregated 794,000 square feet across 14 buildings. Encompassing 702,000 square feet of space, this latest sale marks the final phase of the strategic disposition.
After transaction costs, net sales proceeds amounted to $91.9 million, which is available for a Section 1031 exchange should the company identify assets that meet its investment criteria.
PS Business Parks is strategically shedding some of its non-strategic assets like office and office-oriented flex properties. As a result, PSB is generating dry powder to invest in its growth opportunities through infill industrial property acquisitions in its core markets. These efforts can help the company achieve a better portfolio mix in the days ahead.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been increasing. This is helping the industrial real estate market to grow.
Moreover, over the long term, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels. Due to PS Business Parks’ focus on industrial real estate and well-positioned properties, it remains well-poised to benefit from this trend.
However, with the industrial asset category being attractive in these challenging times, there is a development boom in several markets. This high supply is likely to fuel competition and curb pricing power.
PS Business Parks currently carries a Zacks Rank #4 (Sell). PSB shares have rallied 5.7%, underperforming its industry’s growth of 9.2% over the past six months.
Prologis holds a Zacks Rank of 2 (Buy) at present. Prologis’ 2022 revenues are expected to increase 8.7% year over year.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 3.3% upward in the past two months to $5.07.
The Zacks Consensus Estimate for Public Storage’s 2022 FFO per share has moved marginally north to $15.28 over the past week.
Currently, Public Storage carries a Zacks Rank of 2. PSA's long-term growth rate is projected at 6.1%.
The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved marginally north to $7.85 over the past week.
Extra Space Storage's 2022 revenues are expected to increase 15.2% year over year. Currently, EXR carries a Zacks Rank of 2.
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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PS Business Parks (PSB) Closes Royal Tech Business Park Sale
PS Business Parks, Inc. completed the sale of the remaining 12 buildings in the Royal Tech Business Park, Irving, TX for a gross sales price of $93.0 million. The move comes as part of PS Business Parks’ focused strategy to decrease its ownership of office and office-oriented flex properties.
The Royal Tech Business Park originally aggregated 794,000 square feet across 14 buildings. Encompassing 702,000 square feet of space, this latest sale marks the final phase of the strategic disposition.
After transaction costs, net sales proceeds amounted to $91.9 million, which is available for a Section 1031 exchange should the company identify assets that meet its investment criteria.
PS Business Parks is strategically shedding some of its non-strategic assets like office and office-oriented flex properties. As a result, PSB is generating dry powder to invest in its growth opportunities through infill industrial property acquisitions in its core markets. These efforts can help the company achieve a better portfolio mix in the days ahead.
Amid an e-commerce boom, growth in industries and companies making efforts to improve supply-chain efficiencies, demand for logistics infrastructure and efficient distribution networks has been increasing. This is helping the industrial real estate market to grow.
Moreover, over the long term, apart from the fast adoption of e-commerce, logistics real estate is anticipated to benefit from a likely increase in inventory levels. Due to PS Business Parks’ focus on industrial real estate and well-positioned properties, it remains well-poised to benefit from this trend.
However, with the industrial asset category being attractive in these challenging times, there is a development boom in several markets. This high supply is likely to fuel competition and curb pricing power.
PS Business Parks currently carries a Zacks Rank #4 (Sell). PSB shares have rallied 5.7%, underperforming its industry’s growth of 9.2% over the past six months.
Image Source: Zacks Investment Research
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Some key picks from the REIT sector include Prologis, Inc. (PLD - Free Report) , Public Storage (PSA - Free Report) and Extra Space Storage Inc. (EXR - Free Report) .
Prologis holds a Zacks Rank of 2 (Buy) at present. Prologis’ 2022 revenues are expected to increase 8.7% year over year.
The Zacks Consensus Estimate for PLD’s 2022 funds from operations (FFO) per share has been revised 3.3% upward in the past two months to $5.07.
The Zacks Consensus Estimate for Public Storage’s 2022 FFO per share has moved marginally north to $15.28 over the past week.
Currently, Public Storage carries a Zacks Rank of 2. PSA's long-term growth rate is projected at 6.1%.
The Zacks Consensus Estimate for Extra Space Storage’s 2022 FFO per share has moved marginally north to $7.85 over the past week.
Extra Space Storage's 2022 revenues are expected to increase 15.2% year over year. Currently, EXR carries a Zacks Rank of 2.
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.