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PS Business Parks (PSB) Collects 88% of May Rental Receipts
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PS Business Parks, Inc. has collected about 88% of its total rental receipts for May, marking a fall from April’s 96%. The May rental collection comprised 86%, 88% and 95% of rental collections for its industrial, flex and office properties, respectively.
For May, the company’s level of outstanding rents for industrial, flex and office properties stood at 8%, 8% and 3%, respectively. Its level of deferred rents is at 4%, 4% and 2% for industrial, flex and office properties, respectively. Abatement levels of rent stood at 1% for industrial properties, there were no abatements of rent for flex and office properties.
PS Business Parks also updated on its uncollected receivable balances for April and May, about 65% and 47%, respectively, attached to tenants in California. This is because of some government orders, which thwarted the rent-collection efforts. The company has additionally granted rent relief to about 3% of its customers for the two months ended May 31, 2020.
PS Business Parks leased about 942,000 square feet of space for the two-month period ended May 31, 2020, marking an increase from the 869,000 square feet leased witnessed in the prior-year period. The company witnessed a cash rental growth rate of 4.3% in this space for the period. However, weighted average occupancy for the total portfolio was 91.7% for the two-month period ended May 31, 2020, down from the prior-year period's 92.7%.
The pandemic’s adverse impact on the economy will likely prevail and mar demand for space, resulting in lower leasing demand and occupancy for PS Business Parks’ properties through the rest of the year. With the company’s portfolio having exposure to small- and medium-sized customers, it is more susceptible to the adverse impact of the pandemic.
Alexander & Baldwin, Inc.’s (ALEX - Free Report) FFO per share estimate for 2020 moved up from 22 cents to 83 cents over the past two months. The stock currently sports a Zacks Rank of 1.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 13.3% north to $1.11 over the past month. The stock currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 2.2% north to $1.89 over the past two months. The stock currently sports a Zacks Rank of 1.
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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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PS Business Parks (PSB) Collects 88% of May Rental Receipts
PS Business Parks, Inc. has collected about 88% of its total rental receipts for May, marking a fall from April’s 96%. The May rental collection comprised 86%, 88% and 95% of rental collections for its industrial, flex and office properties, respectively.
For May, the company’s level of outstanding rents for industrial, flex and office properties stood at 8%, 8% and 3%, respectively. Its level of deferred rents is at 4%, 4% and 2% for industrial, flex and office properties, respectively. Abatement levels of rent stood at 1% for industrial properties, there were no abatements of rent for flex and office properties.
PS Business Parks also updated on its uncollected receivable balances for April and May, about 65% and 47%, respectively, attached to tenants in California. This is because of some government orders, which thwarted the rent-collection efforts. The company has additionally granted rent relief to about 3% of its customers for the two months ended May 31, 2020.
PS Business Parks leased about 942,000 square feet of space for the two-month period ended May 31, 2020, marking an increase from the 869,000 square feet leased witnessed in the prior-year period. The company witnessed a cash rental growth rate of 4.3% in this space for the period. However, weighted average occupancy for the total portfolio was 91.7% for the two-month period ended May 31, 2020, down from the prior-year period's 92.7%.
The pandemic’s adverse impact on the economy will likely prevail and mar demand for space, resulting in lower leasing demand and occupancy for PS Business Parks’ properties through the rest of the year. With the company’s portfolio having exposure to small- and medium-sized customers, it is more susceptible to the adverse impact of the pandemic.
Shares of this Zacks Rank #4 (Sell) company have declined 16.4% over the past year compared with the industry's fall of 3.4%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Alexander & Baldwin, Inc.’s (ALEX - Free Report) FFO per share estimate for 2020 moved up from 22 cents to 83 cents over the past two months. The stock currently sports a Zacks Rank of 1.
City Office REIT, Inc.’s (CIO - Free Report) Zacks Consensus Estimate for the ongoing-year FFO per share moved 13.3% north to $1.11 over the past month. The stock currently flaunts a Zacks Rank of 1.
One Liberty Properties, Inc.’s (OLP - Free Report) Zacks Consensus Estimate for the current year’s FFO per share moved 2.2% north to $1.89 over the past two months. The stock currently sports a Zacks Rank of 1.
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.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>