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 (PSB) in Good Shape: Should You Hold the Stock?
Read MoreHide Full Article
We updated our research report on PS Business Parks, Inc. on Mar 24.
This Glendale, CA-based real estate investment trust (REIT) is engaged in owning, acquiring, developing and operating commercial real estate properties, especially multi-tenant flex, office and industrial. In February, the company reported fourth-quarter 2016 funds from operations (FFO), as adjusted, of $1.39 per share, beating the Zacks Consensus Estimate by a penny, and improving 6.1% from the prior-year quarter. Rise in net operating income (NOI) aided the results. Also, the company declared a 13.3% rise in quarterly dividend.
PS Business Parks’ portfolio is diversified and spread across different markets. This gives the company the ability to tap opportunities in different asset classes and helps in mitigating operating risk associated with a particular asset category or economic downturns in a specific region. Also, the company’s healthy fundamentals in multi-tenant flex, office and industrial asset categories are expected to support growth and lead to decent stock performance.
However, for PS Business Parks, despite most markets remaining favorable, the Virginia and Maryland markets continued to be soft due to persistent pressure on rental rates and occupancy. Also, hike in interest rate can pose a challenge for PS Business Parks. This is because the company’s ability to refinance existing debt would get restricted, while the interest cost on new debt would increase.
Shares of PS Business Parks outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past six months. During this time, PS Business Parks declined 1%, while the industry lost 4.7%. Its FFO per share estimate for 2017 remained unchanged in the last 30 days.
Currently, PS Business Parks carries a Zacks Rank #3 (Hold).
In the last 30 days, Global Net Lease’s FFO per share for first-quarter 2017 escalated 11.1% to 60 cents.
In the last seven days, CoreSite Realty’s FFO per share for first-quarter 2017 increased 0.9% to $1.06.
CorEnergy Infrastructure Trust’s first-quarter 2017 FFO per share estimates moved up 6.5% to $1.14, in the last 30 days.
Note: 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. All EPS numbers presented in this write up represent FFO per share.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
PS Business (PSB) in Good Shape: Should You Hold the Stock?
We updated our research report on PS Business Parks, Inc. on Mar 24.
This Glendale, CA-based real estate investment trust (REIT) is engaged in owning, acquiring, developing and operating commercial real estate properties, especially multi-tenant flex, office and industrial. In February, the company reported fourth-quarter 2016 funds from operations (FFO), as adjusted, of $1.39 per share, beating the Zacks Consensus Estimate by a penny, and improving 6.1% from the prior-year quarter. Rise in net operating income (NOI) aided the results. Also, the company declared a 13.3% rise in quarterly dividend.
PS Business Parks’ portfolio is diversified and spread across different markets. This gives the company the ability to tap opportunities in different asset classes and helps in mitigating operating risk associated with a particular asset category or economic downturns in a specific region. Also, the company’s healthy fundamentals in multi-tenant flex, office and industrial asset categories are expected to support growth and lead to decent stock performance.
However, for PS Business Parks, despite most markets remaining favorable, the Virginia and Maryland markets continued to be soft due to persistent pressure on rental rates and occupancy. Also, hike in interest rate can pose a challenge for PS Business Parks. This is because the company’s ability to refinance existing debt would get restricted, while the interest cost on new debt would increase.
Shares of PS Business Parks outperformed the Zacks categorized REIT and Equity Trust – Other industry over the past six months. During this time, PS Business Parks declined 1%, while the industry lost 4.7%. Its FFO per share estimate for 2017 remained unchanged in the last 30 days.
Currently, PS Business Parks carries a Zacks Rank #3 (Hold).
Investors interested in the REIT space, may consider stocks like Global Net Lease, Inc. (GNL - Free Report) , CoreSite Realty Corporation (COR - Free Report) and CorEnergy Infrastructure Trust, Inc. . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the last 30 days, Global Net Lease’s FFO per share for first-quarter 2017 escalated 11.1% to 60 cents.
In the last seven days, CoreSite Realty’s FFO per share for first-quarter 2017 increased 0.9% to $1.06.
CorEnergy Infrastructure Trust’s first-quarter 2017 FFO per share estimates moved up 6.5% to $1.14, in the last 30 days.
Note: 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. All EPS numbers presented in this write up represent FFO per share.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017? Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>