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) Q2 FFO Down Y/Y on Rental Rate Decline
Read MoreHide Full Article
PS Business Parks, Inc. reported second-quarter 2020 core funds from operations (FFO) per share of $1.59, missing the Zacks Consensus Estimate of $1.66. Moreover, the reported figure decreased 9.5% year over year.
Results reflect fall in same-park rental income, net operating income (NOI) and occupancy. However, substantial rent collections for July and improvement in same-park annualized revenue per occupied-square-foot were tailwinds.
Rental income came in at $100.6 million, marking a decline of 6.7% from the year-ago quarter’s $107.8 million.
Additionally, the company noted that it has collected about 92% of the average total rental receipts for July. This comprised 90%, 92% and 96% collection for industrial, flex and office spaces, respectively.
Quarter in Detail
Same-park rental income was down 2.3% year over year to about $92.7 million and same-park NOI slid 3.6% to $65.7 million on declining rental rates.
Same-park annualized revenue per occupied-square-foot increased 5.3% to $16.40. However, weighted average square-foot occupancy shrunk 180 basis points year on year to 92.9%.
Liquidity
PS Business Parks exited the second quarter with cash and cash equivalents of $98.8 million, up from the $62.8 million reported at the end of 2019.
Dividend Update
On Aug 4, the company announced a quarterly dividend of $1.05 per common share. This dividend will be paid on Sep 30, to shareholders of record as of Sep 15, 2020.
Apartment Investment and Management Company (AIV - Free Report) reported second-quarter 2020 pro-forma FFO of 63 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. Also, the figure improved 5% from the year-ago quarter’s 60 cents.
Vornado Realty Trust (VNO - Free Report) delivered second-quarter FFO plus assumed conversions as adjusted of 55 cents per share, missing the Zacks Consensus Estimate of 74 cents. The reported figure also plunged 39.6% year over year.
Mack-Cali Realty Corp’s second-quarter 2020 core FFO per share of 28 cents missed the Zacks Consensus Estimate of 31 cents. Moreover, the figure compared unfavorably with the year-ago quarter’s reported number of 40 cents.
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.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
PS Business Parks (PSB) Q2 FFO Down Y/Y on Rental Rate Decline
PS Business Parks, Inc. reported second-quarter 2020 core funds from operations (FFO) per share of $1.59, missing the Zacks Consensus Estimate of $1.66. Moreover, the reported figure decreased 9.5% year over year.
Results reflect fall in same-park rental income, net operating income (NOI) and occupancy. However, substantial rent collections for July and improvement in same-park annualized revenue per occupied-square-foot were tailwinds.
Rental income came in at $100.6 million, marking a decline of 6.7% from the year-ago quarter’s $107.8 million.
Additionally, the company noted that it has collected about 92% of the average total rental receipts for July. This comprised 90%, 92% and 96% collection for industrial, flex and office spaces, respectively.
Quarter in Detail
Same-park rental income was down 2.3% year over year to about $92.7 million and same-park NOI slid 3.6% to $65.7 million on declining rental rates.
Same-park annualized revenue per occupied-square-foot increased 5.3% to $16.40. However, weighted average square-foot occupancy shrunk 180 basis points year on year to 92.9%.
Liquidity
PS Business Parks exited the second quarter with cash and cash equivalents of $98.8 million, up from the $62.8 million reported at the end of 2019.
Dividend Update
On Aug 4, the company announced a quarterly dividend of $1.05 per common share. This dividend will be paid on Sep 30, to shareholders of record as of Sep 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-eps-surprise-chart | PS Business Parks, Inc. Quote
Performance of Other REITs
Apartment Investment and Management Company (AIV - Free Report) reported second-quarter 2020 pro-forma FFO of 63 cents per share, surpassing the Zacks Consensus Estimate of 61 cents. Also, the figure improved 5% from the year-ago quarter’s 60 cents.
Vornado Realty Trust (VNO - Free Report) delivered second-quarter FFO plus assumed conversions as adjusted of 55 cents per share, missing the Zacks Consensus Estimate of 74 cents. The reported figure also plunged 39.6% year over year.
Mack-Cali Realty Corp’s second-quarter 2020 core FFO per share of 28 cents missed the Zacks Consensus Estimate of 31 cents. Moreover, the figure compared unfavorably with the year-ago quarter’s reported number of 40 cents.
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.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>