U.S. markets closed
  • S&P 500

    -90.48 (-2.04%)
  • Dow 30

    -569.38 (-1.63%)
  • Nasdaq

    -423.29 (-2.83%)
  • Russell 2000

    -51.23 (-2.25%)
  • Crude Oil

    -0.93 (-1.24%)
  • Gold

    -3.50 (-0.20%)
  • Silver

    +0.01 (+0.04%)

    -0.0001 (-0.01%)
  • 10-Yr Bond

    +0.0500 (+3.37%)

    -0.0002 (-0.02%)

    +0.0500 (+0.04%)

    -954.73 (-2.26%)
  • CMC Crypto 200

    -23.93 (-2.26%)
  • FTSE 100

    -35.30 (-0.50%)
  • Nikkei 225

    -56.10 (-0.19%)

PS Business Parks (PSB) Q2 FFO Down Y/Y on Rental Rate Decline

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

PS Business Parks, Inc. PSB 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%.


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 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

Performance of Other REITs

Apartment Investment and Management Company AIV 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 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 CLI 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>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apartment Investment and Management Company (AIV) : Free Stock Analysis Report
Vornado Realty Trust (VNO) : Free Stock Analysis Report
PS Business Parks, Inc. (PSB) : Free Stock Analysis Report
MackCali Realty Corporation (CLI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research