NYSE:PSB.PRW

Stock Analysis Report

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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

Flawless balance sheet average dividend payer.


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.PRW's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.3%

PSB.PRW

6.3%

US REITs

2.5%

US Market


1 Year Return

3.4%

PSB.PRW

-9.7%

US REITs

8.4%

US Market

Return vs Industry: PSB.PRW exceeded the US REITs industry which returned -9.7% over the past year.

Return vs Market: PSB.PRW underperformed the US Market which returned 8.4% over the past year.


Shareholder returns

PSB.PRWIndustryMarket
7 Day1.3%6.3%2.5%
30 Day0.06%0.6%5.1%
90 Day-0.2%-11.2%2.0%
1 Year9.0%3.4%-5.9%-9.7%10.9%8.4%
3 Year19.9%1.9%10.7%-3.0%30.5%21.9%
5 Yearn/a39.6%10.8%56.9%39.2%

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?

29.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSB.PRW ($25.25) is trading above our estimate of fair value ($21.31)

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


Price To Earnings Ratio

PE vs Industry: PSB.PRW is poor value based on its PE Ratio (29.4x) compared to the REITs industry average (27.9x).

PE vs Market: PSB.PRW is poor value based on its PE Ratio (29.4x) compared to the US market (16x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PSB.PRW is overvalued based on its PB Ratio (4.5x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

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

-9.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSB.PRW's earnings are forecast to decline over the next 3 years (-9.4% per year).

Earnings vs Market: PSB.PRW's earnings are forecast to decline over the next 3 years (-9.4% per year).

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

Revenue vs Market: PSB.PRW's revenue (0.6% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: PSB.PRW's revenue (0.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSB.PRW's Return on Equity is forecast to be low in 3 years time (5%).


Next Steps

Past Performance

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

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PSB.PRW has high quality earnings.

Growing Profit Margin: PSB.PRW's current net profit margins (29%) are lower than last year (36.6%).


Past Earnings Growth Analysis

Earnings Trend: PSB.PRW's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: PSB.PRW'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.PRW had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the REITs industry average (5.3%).


Return on Equity

High ROE: PSB.PRW's Return on Equity (11.3%) is considered low.


Next Steps

Financial Health

How is PS Business Parks's financial position?


Financial Position Analysis

Short Term Liabilities: PSB.PRW's short term assets ($124.5M) exceed its short term liabilities ($74.8M).

Long Term Liabilities: PSB.PRW's short term assets ($124.5M) exceed its long term liabilities ($3.8M).


Debt to Equity History and Analysis

Debt Level: PSB.PRW is debt free.

Reducing Debt: PSB.PRW has no debt compared to 5 years ago when its debt to equity ratio was 13%.

Debt Coverage: PSB.PRW has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PSB.PRW has no debt, therefore 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?

3.17%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: PSB.PRW's dividend (3.17%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PSB.PRW's dividend (3.17%) is low compared to the top 25% of dividend payers in the US market (4.45%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.1%), PSB.PRW'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?

1.7yrs

Average management tenure


CEO

J.P. Petersen (55yo)

0.083

Tenure

US$864,464

Compensation

Mr. John W. Petersen, also known as " J.P.", serves as an Interim President and Chief Executive Officer of PS Business Parks, Inc. since April 20, 2020. He has been Chief Operating Officer at PS Business P ...


CEO Compensation Analysis

Compensation vs Market: J.P.'s total compensation ($USD864.46K) is below average for companies of similar size in the US market ($USD5.90M).

Compensation vs Earnings: J.P.'s compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Petersen
Interim President0.083yrUS$864.46k0.058% $2.7m
Jeffrey Hedges
Executive VP1.67yrsUS$761.96k0.0036% $163.8k
Trenton Groves
Senior VP1.67yrsUS$411.96k0.021% $979.1k
Maria Hawthorne
President3.83yrsUS$956.96k0.15% $6.8m
Coby Holley
Vice President of Investmentsno datano datano data
Lily Hughes
Assistant Secretaryno datano datano data
Bob Murphy
Property Manager of Miami International Commerce Center15.75yrsno datano data

1.7yrs

Average Tenure

52.5yo

Average Age

Experienced Management: PSB.PRW's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Maria Hawthorne
President3.83yrsUS$956.96k0.15% $6.8m
Joseph Russell
Director16.75yrsUS$46.20k0.14% $6.5m
Ronald Havner
Chairman22.17yrsUS$118.00k0.57% $26.5m
James Kropp
Independent Director22.17yrsUS$122.50k0.053% $2.4m
Robert Rollo
Independent Presiding Director0.33yrUS$186.81k0.0047% $218.7k
Gary Pruitt
Independent Director8.25yrsUS$176.52k0.0073% $335.9k
Jennifer Dunbar
Independent Director11.17yrsUS$306.48k0.0091% $418.5k
Stephen Wilson
Independent Director0.83yrUS$310.60kno data
Peter Schultz
Independent Director8.25yrsUS$186.02k0.0044% $203.0k
Kristy Pipes
Independent Director0.83yrUS$307.65kno data

8.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PSB.PRW's board of directors are considered experienced (8.3 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.PRW
  • Exchange: NYSE
  • Founded: 1990
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: US$4.614b
  • Market Cap: US$3.645b
  • Shares outstanding: 34.78m
  • 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.PRWNYSE (New York Stock Exchange)DEP SHS RP PFD WUSUSDOct 2016
PSB.PRXNYSE (New York Stock Exchange)DEP SHS RP PFD XUSUSDSep 2017
PSB.PRYNYSE (New York Stock Exchange)DEP SHS RP PFD YUSUSDDec 2017
PSB.PRZNYSE (New York Stock Exchange)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 March 31, 2020, the Company wholly owned 27.5 million rentable square feet with approximately 5,000 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 Analysis2020/05/29 05:26
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.