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PS Business Parks (PSB) Q1 FFO Up Y/Y on Rental Rate Growth

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PS Business Parks, Inc. reported first-quarter 2020 core funds from operations (FFO) per share of $1.72. The figure increased 2.5% year over year.   

Results highlight improvement in same-park net operating income (NOI), aided by growth in rental rates, as well as higher NOI from non-same-park and multi-family assets.

Rental income came in at $106.2 million, displaying a decline of 1.5% from the year-ago quarter’s $107.8 million.

Additionally, the company informed that it has collected about 88% of its average total rental receipts for April. This comprised 85%, 87% and 97% collection for industrial, flex and office spaces, respectively.

Quarter in Detail

Same-park rental income was up 3.3% year over year to about $98 million, while same-park NOI climbed 4.7% to $69.8 million on improving rental rates.

Same-park annualized revenue per occupied-square-foot increased 5.4% to $16.42. However, weighted average square-foot occupancy shrunk 190 basis points year on year to 92.9%.

Portfolio Activity

On Jan 7, PS Business Parks completed the sale of Metro Park IV. This is a single-tenant building spanning 113,000 square feet in Montgomery County, MD. The building was sold for $30 million.

Further, on Jan 10, the company acquired a muti-tenant industrial park, La Mirada Commerce Center, comprising roughly 73,000 rentable square feet in La Mirada, CA, for $13.4 million.

Liquidity

PS Business Parks exited first-quarter 2020 with cash and cash equivalents of $87.8 million, up from the $62.8 million reported at the end of 2019.

Dividend Update

On Apr 22, the company anounced a quarterly dividend of $1.05 per common share. This dividend will be paid on Jun 30, to shareholders of record as of Jun 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 and EPS Surprise

PS Business Parks, Inc. price-consensus-eps-surprise-chart | PS Business Parks, Inc. Quote

We, now, look forward to the earnings releases of other REITs, Omega Healthcare Investors, Inc. (OHI - Free Report) , Vornado Realty Trust (VNO - Free Report) and Realty Income Corporation (O - Free Report) . All three companies are scheduled to release their quarterly numbers on May 4.

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.

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