It has been about a month since the last earnings report for PS Business Parks . Shares have added about 3.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PS Business Parks due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PS Business Parks Tops Q2 FFO Estimates, Hikes Dividend
PS Business Parks reported second-quarter 2018 FFO of $1.59 per share, beating the Zacks Consensus Estimate of $1.58. The figure also came in 2.6% higher than $1.55 recorded in the prior-year quarter. The company also announced a 23.5% hike in its quarterly dividend.
Results highlight a rise in Same-Park NOI backed by growth in rental rates and occupancy, as well as improved NOI from non-Same-Park and multi-family assets.
Rental income came in at around $101.8 million, marking 2% growth from the year-ago tally. However, the reported figure missed the Zacks Consensus Estimate of $103.1 million.
Quarter in Detail
Same-Park rental income was up 2.4% year over year to $97.8 million, while Same-Park NOI climbed 2.1% year over year to $68.9 million, driven by improving rental rates and occupancy level.
Same-Park annualized rental income per occupied-square-foot inched up 1.4% to $15.36, while weighted average square-foot occupancy was 94.6%, up 90 basis points year over year.
Liquidity
PS Business Parks exited second-quarter 2018 with cash and cash equivalents of $7.2 million, down from $114.9 million reported at the end of the prior year.
Portfolio Update
During the April-June quarter, the company acquired two multi-tenant industrial parks, totaling 1.1 million rentable square feet of space in Springfield, VA, for $143.8 million. There are 19 buildings in the portfolio which are situated in the Springfield/Newington industrial submarket. The portfolio was 76.1% occupied as of the acquisition date.
Dividend Update
On Jul 24, the company announced a quarterly dividend of $1.05 per share, denoting an increase of 23.5% from the previous payout. The dividend is payable on Sep 27, to shareholders of record as of Sep 12, 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, PS Business Parks has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise PS Business Parks has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Image: Bigstock
Why Is PS Business Parks (PSB) Up 3.7% Since Last Earnings Report?
It has been about a month since the last earnings report for PS Business Parks . Shares have added about 3.7% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is PS Business Parks due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PS Business Parks Tops Q2 FFO Estimates, Hikes Dividend
PS Business Parks reported second-quarter 2018 FFO of $1.59 per share, beating the Zacks Consensus Estimate of $1.58. The figure also came in 2.6% higher than $1.55 recorded in the prior-year quarter. The company also announced a 23.5% hike in its quarterly dividend.
Results highlight a rise in Same-Park NOI backed by growth in rental rates and occupancy, as well as improved NOI from non-Same-Park and multi-family assets.
Rental income came in at around $101.8 million, marking 2% growth from the year-ago tally. However, the reported figure missed the Zacks Consensus Estimate of $103.1 million.
Quarter in Detail
Same-Park rental income was up 2.4% year over year to $97.8 million, while Same-Park NOI climbed 2.1% year over year to $68.9 million, driven by improving rental rates and occupancy level.
Same-Park annualized rental income per occupied-square-foot inched up 1.4% to $15.36, while weighted average square-foot occupancy was 94.6%, up 90 basis points year over year.
Liquidity
PS Business Parks exited second-quarter 2018 with cash and cash equivalents of $7.2 million, down from $114.9 million reported at the end of the prior year.
Portfolio Update
During the April-June quarter, the company acquired two multi-tenant industrial parks, totaling 1.1 million rentable square feet of space in Springfield, VA, for $143.8 million. There are 19 buildings in the portfolio which are situated in the Springfield/Newington industrial submarket. The portfolio was 76.1% occupied as of the acquisition date.
Dividend Update
On Jul 24, the company announced a quarterly dividend of $1.05 per share, denoting an increase of 23.5% from the previous payout. The dividend is payable on Sep 27, to shareholders of record as of Sep 12, 2018.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
At this time, PS Business Parks has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate investors will probably be better served looking elsewhere.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise PS Business Parks has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.