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.
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-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.
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