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.
Why Should You Buy PS Business Parks (PSB) Stock Right Now?
Read MoreHide Full Article
The rate hike and a cautious approach might have deterred you from making investments in the REIT industry. But make sure not to ignore the chances of scooping up big gains from this special hybrid asset class that also benefits from the favorable dynamics of the individual asset categories.
In fact, one such REIT stock which has been displaying strength is PS Business Parks Inc. . This Zacks Rank #2 (Buy) stock has risen 14.3% in the past three months compared with 3.7% growth recorded by the Zacks categorized REIT and Equity Trust – Other industry.
This Glendale, CA-based REIT is into ownership, acquisition, development and operation of commercial real estate properties, especially multi-tenant flex, office and industrial assets. The healthy fundamentals in these asset categories are anticipated to drive growth, while portfolio repositioning strategies are likely to help the company emerge stronger.
In June, the company declared the opening of Highgate at The Mile, a 395-unit, luxury apartment community in Tysons, VA. This move comes as part of the company’s efforts to enhance its portfolio in the vibrant Tysons market.
In fact, PS Business Parks continues to depict robust fundamentals and improving prospects, letting us further explore why it is a solid choice now.
Backed by better-than-expected growth in revenues and higher net operating income, the company delivered a surprise of 7.8% in terms of funds from operations (FFO) per share in first-quarter 2017. Also, over the last three–five years, PS Business Parks witnessed nearly 13.5% growth in FFO per share against 2.9% of that of the industry.
Further, the company’s projected sales growth of 3.8% for 2017 is ahead of the industry’s expected growth rate of 2.9%, signaling brighter days ahead. Also, FFO per share is estimated to grow at the rate of 11.8% for 2017, which is way above the industry average of 1.6%.
Moreover, PS Business Parks’ Return on Equity (ROE) is 15.85% compared with the industry average of 12.8%. This indicates that the company reinvests more efficiently compared to the industry.
Also, the debt-to-equity ratio for PS Business Parks is 0.11 compared with the industry average of 0.82. This highlights greater financial stability for the company and lesser risks for shareholders.
Liberty Property Trust has a long-term FFO per share growth rate of 6%.
Prologis’s FFO per share estimates for second-quarter 2017 moved up 2.6% to 78 cents, over the past 30 days.
Whitestone REIT’s FFO per share estimates for 2017 moved up 4.0% to $1.05, over the past 60 days.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. 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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Should You Buy PS Business Parks (PSB) Stock Right Now?
The rate hike and a cautious approach might have deterred you from making investments in the REIT industry. But make sure not to ignore the chances of scooping up big gains from this special hybrid asset class that also benefits from the favorable dynamics of the individual asset categories.
In fact, one such REIT stock which has been displaying strength is PS Business Parks Inc. . This Zacks Rank #2 (Buy) stock has risen 14.3% in the past three months compared with 3.7% growth recorded by the Zacks categorized REIT and Equity Trust – Other industry.
This Glendale, CA-based REIT is into ownership, acquisition, development and operation of commercial real estate properties, especially multi-tenant flex, office and industrial assets. The healthy fundamentals in these asset categories are anticipated to drive growth, while portfolio repositioning strategies are likely to help the company emerge stronger.
In June, the company declared the opening of Highgate at The Mile, a 395-unit, luxury apartment community in Tysons, VA. This move comes as part of the company’s efforts to enhance its portfolio in the vibrant Tysons market.
In fact, PS Business Parks continues to depict robust fundamentals and improving prospects, letting us further explore why it is a solid choice now.
Backed by better-than-expected growth in revenues and higher net operating income, the company delivered a surprise of 7.8% in terms of funds from operations (FFO) per share in first-quarter 2017. Also, over the last three–five years, PS Business Parks witnessed nearly 13.5% growth in FFO per share against 2.9% of that of the industry.
Further, the company’s projected sales growth of 3.8% for 2017 is ahead of the industry’s expected growth rate of 2.9%, signaling brighter days ahead. Also, FFO per share is estimated to grow at the rate of 11.8% for 2017, which is way above the industry average of 1.6%.
Moreover, PS Business Parks’ Return on Equity (ROE) is 15.85% compared with the industry average of 12.8%. This indicates that the company reinvests more efficiently compared to the industry.
Also, the debt-to-equity ratio for PS Business Parks is 0.11 compared with the industry average of 0.82. This highlights greater financial stability for the company and lesser risks for shareholders.
Other Key Picks
Other top-ranked stocks in the real estate space include Liberty Property Trust , Prologis, Inc. (PLD - Free Report) and Whitestone REIT (WSR - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Liberty Property Trust has a long-term FFO per share growth rate of 6%.
Prologis’s FFO per share estimates for second-quarter 2017 moved up 2.6% to 78 cents, over the past 30 days.
Whitestone REIT’s FFO per share estimates for 2017 moved up 4.0% to $1.05, over the past 60 days.
Note: All EPS numbers presented in this write up represent funds from operations (FFO) per share. 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.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>