Back to top

Image: Bigstock

PS Business Parks Aided by Diverse Portfolio: Time to Hold?

Read MoreHide Full Article

On Dec 23, 2016, we issued an updated research report on PS Business Parks, Inc. . The Glendale, CA-based real estate investment trust (REIT) owns, acquires, develops and operates commercial real estate properties.

The company’s diversified portfolio across varied markets enables it to tap opportunities in different asset classes. Alongside, PS Business Parks’ healthy fundamentals in multi-tenant flex, office and industrial asset categories support its growth.

In October, the company reported third-quarter 2016 adjusted funds from operations (“FFO”) per share of $1.43, beating the Zacks Consensus Estimate by 3 cents and improving 19.2% from $1.20 in the prior-year quarter. Results reflected a rise in net operating income together with lower preferred distributions as well as reduced interest expense.

PS Business Parks faces intense competition from developers, owners and operators of office properties and other industrial assets which adversely affect its ability to attract and retain tenants at relatively higher rents than its competitors. Moreover, the hike in rate of interest poses a challenge for the company.

Shares of PS Business Parks outperformed the Zacks categorized REIT and Equity Trust - Other industry, year to date. During the same time span, shares of the company grew 30.5%, whereas the industry gained 3.6%. However, over the past 60 days, its current year FFO estimates rose 0.2% to $5.36.


PS Business Parks currently carries a Zacks Rank # 3 (Hold).

Some better-ranked stocks in the real estate space include AGNC Investment Corp. (AGNC - Free Report) , Seritage Growth Properties (SRG - Free Report) and DCT Industrial Trust Inc. . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

AGNC Investment’s current-year estimates have moved up 7.3% to $2.36 per share, over the past 60 days.

Seritage Growths’ current-year estimates have moved up 0.9% to $2.34 per share, over the past 60 days.

DCT Industrial Trust’s current-year estimates have moved up 2.3%, over the past 60 days to $2.24 per share.

Zacks’ Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?

Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
 


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


AGNC Investment Corp. (AGNC) - free report >>

Seritage Growth Properties (SRG) - free report >>

Published in