NYSE:PSB.PRU

Stock Analysis Report

Executive Summary

PS Business Parks, Inc., a member of the S&P MidCap 400, is a REIT that acquires, develops, owns and operates commercial properties, primarily multi-tenant industrial, flex and office space.


Snowflake Analysis

Average dividend payer with questionable track record.


Similar Companies

Share Price & News

How has PS Business Parks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PSB.PRU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.08%

PSB.PRU

0.3%

US REITs

2.4%

US Market


1 Year Return

5.5%

PSB.PRU

-20.3%

US REITs

-10.0%

US Market

Return vs Industry: PSB.PRU underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: PSB.PRU underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PSB.PRUIndustryMarket
7 Day-0.08%0.3%2.4%
30 Day-1.1%-22.2%-11.0%
90 Day-1.4%-24.2%-19.4%
1 Year11.8%5.5%-16.9%-20.3%-8.1%-10.0%
3 Year19.8%0.7%-2.8%-15.0%17.3%9.6%
5 Year41.7%6.0%15.9%-7.9%36.1%21.1%

Price Volatility Vs. Market

How volatile is PS Business Parks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is PS Business Parks undervalued compared to its fair value and its price relative to the market?

43.71x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSB.PRU ($25.25) is trading above our estimate of fair value ($18.03)

Significantly Below Fair Value: PSB.PRU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PSB.PRU is poor value based on its PE Ratio (43.7x) compared to the REITs industry average (37.8x).

PE vs Market: PSB.PRU is poor value based on its PE Ratio (43.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PSB.PRU's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PSB.PRU is overvalued based on its PB Ratio (6.2x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is PS Business Parks forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-4.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSB.PRU's earnings are forecast to decline over the next 3 years (-4.2% per year).

Earnings vs Market: PSB.PRU's earnings are forecast to decline over the next 3 years (-4.2% per year).

High Growth Earnings: PSB.PRU's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PSB.PRU's revenue is expected to decline over the next 3 years (-1.5% per year).

High Growth Revenue: PSB.PRU's revenue is forecast to decline over the next 3 years (-1.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PSB.PRU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PS Business Parks performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSB.PRU has high quality earnings.

Growing Profit Margin: PSB.PRU's current net profit margins (26.3%) are lower than last year (39.5%).


Past Earnings Growth Analysis

Earnings Trend: PSB.PRU's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: PSB.PRU's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PSB.PRU had negative earnings growth (-30.7%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: PSB.PRU's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is PS Business Parks's financial position?


Financial Position Analysis

Short Term Liabilities: PSB.PRU's short term assets ($169.0M) exceed its short term liabilities ($139.8M).

Long Term Liabilities: PSB.PRU's short term assets ($169.0M) exceed its long term liabilities ($2.5M).


Debt to Equity History and Analysis

Debt Level: PSB.PRU's debt to equity ratio (2.5%) is considered satisfactory.

Reducing Debt: PSB.PRU's debt to equity ratio has reduced from 13.1% to 2.5% over the past 5 years.

Debt Coverage: PSB.PRU's debt is well covered by operating cash flow (586.5%).

Interest Coverage: PSB.PRU earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is PS Business Parks's current dividend yield, its reliability and sustainability?

2.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSB.PRU's dividend (2.34%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: PSB.PRU's dividend (2.34%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: PSB.PRU's dividends per share have been stable in the past 10 years.

Growing Dividend: PSB.PRU's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.4%), PSB.PRU's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Maria Hawthorne (59yo)

3.33s

Tenure

US$3,773,551

Compensation

Ms. Maria R. Hawthorne has been Chief Executive Officer and Director of PS Business Parks, Inc. since July 01, 2016. Ms. Hawthorne has been President of PS Business Parks since August 24, 2015 and was its  ...


CEO Compensation Analysis

Compensation vs Market: Maria's total compensation ($USD3.77M) is below average for companies of similar size in the US market ($USD6.46M).

Compensation vs Earnings: Maria's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Maria Hawthorne
President3.33yrsUS$3.77m0.12% $7.4m
Jeffrey Hedges
Executive VP1.17yrsUS$1.90mno data
John Petersen
Executive VP & COO14.92yrsUS$721.80k0.048% $3.0m
Trenton Groves
Senior VP1.17yrsUS$570.03k0.017% $1.1m
Coby Holley
Vice President of Investmentsno datano datano data
Lily Hughes
Assistant Secretaryno datano datano data
Bob Murphy
Property Manager of Miami International Commerce Center15.25yrsno datano data

3.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: PSB.PRU's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Maria Hawthorne
President3.33yrsUS$3.77m0.12% $7.4m
Joseph Russell
Director16.25yrsUS$36.22k0.13% $8.0m
Ronald Havner
Chairman21.67yrsUS$66.62k0.57% $35.8m
James Kropp
Presiding Independent Director0.75yrUS$104.62k0.051% $3.3m
Robert Rollo
Independent Director6.08yrsUS$92.97k0.0047% $300.2k
Gary Pruitt
Independent Director7.75yrsUS$93.02k0.0073% $460.7k
Jennifer Dunbar
Independent Director10.75yrsUS$105.12k0.014% $904.4k
Stephen Wilson
Director0.33yrno datano data
Peter Schultz
Independent Director7.75yrsUS$102.02k0.0044% $278.7k
Kristy Pipes
Director0.33yrno datano data

6.9yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PSB.PRU's board of directors are considered experienced (6.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PS Business Parks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PS Business Parks, Inc.
  • Ticker: PSB.PRU
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$6.320b
  • Market Cap: US$4.934b
  • Shares outstanding: 34.74m
  • Website: https://www.psbusinessparks.com

Number of Employees


Location

  • PS Business Parks, Inc.
  • 701 Western Avenue
  • Glendale
  • California
  • 91201
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSBNYSE (New York Stock Exchange)YesCommon SharesUSUSDMar 1998
W8UDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 1998
PSB.PRUNYSE (New York Stock Exchange)S R1/1000 PF UUSUSDSep 2012
PSB.PRVNYSE (New York Stock Exchange)DEP1/1000 PFD VUSUSDMar 2013
PSB.PRWNYSE (New York Stock Exchange)SHS PFD SER WUSUSDOct 2016
PSB.PRXNYSE (New York Stock Exchange)5.25% CUM PFD XUSUSDSep 2017
PSB.PRYNYSE (New York Stock Exchange)5.20% SHS PFD YUSUSDDec 2017
PSPB.ZOTCPK (Pink Sheets LLC)4.875 DP PFD ZUSUSDOct 2019

Biography

PS Business Parks, Inc., a member of the S&P MidCap 400, is a REIT that acquires, develops, owns and operates commercial properties, primarily multi-tenant industrial, flex and office space. As of October 22, 2019, the Company wholly owned 27.5 million rentable square feet with approximately 4,900 commercial customers in six states and held a 95.0% interest in a 395-unit apartment complex. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/05 00:35
End of Day Share Price2019/11/04 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.