PS Business Parks
Market Cap
US$4.6b
Last Updated
2021/01/16 00:05 UTC
Data Sources
Company Financials +
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. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 5.9% per year for the next 3 years
Snowflake Analysis
Flawless balance sheet established 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: PSB's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
4.8%
PSB
1.8%
US REITs
-0.9%
US Market
1 Year Return
-19.7%
PSB
-10.8%
US REITs
19.6%
US Market
Return vs Industry: PSB underperformed the US REITs industry which returned -11.6% over the past year.
Return vs Market: PSB underperformed the US Market which returned 21% over the past year.
Shareholder returns
| PSB | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.8% | 1.8% | -0.9% |
| 30 Day | 1.7% | -0.3% | 3.0% |
| 90 Day | 15.4% | 4.1% | 11.5% |
| 1 Year | -17.0%-19.7% | -6.5%-10.8% | 22.3%19.6% |
| 3 Year | 25.6%15.0% | 25.9%10.3% | 45.3%35.7% |
| 5 Year | 85.9%61.0% | 53.0%21.5% | 124.8%99.9% |
Long-Term 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
3 weeks ago | Simply Wall St
Should You Review Recent Insider Transactions At PS Business Parks, Inc. (NYSE:PSB)?1 month ago | Simply Wall St
PS Business Parks (NYSE:PSB) Has Compensated Shareholders With A Respectable 78% Return On Their Investment2 months ago | Simply Wall St
PS Business Parks, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next YearValuation
Is PS Business Parks undervalued compared to its fair value and its price relative to the market?
2.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PSB ($137.18) is trading below our estimate of fair value ($140.93)
Significantly Below Fair Value: PSB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PSB is good value based on its PE Ratio (30.1x) compared to the US REITs industry average (37.6x).
PE vs Market: PSB is poor value based on its PE Ratio (30.1x) compared to the US market (21.3x).
Price to Earnings Growth Ratio
PEG Ratio: PSB's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PSB is overvalued based on its PB Ratio (4.6x) compared to the US REITs industry average (1.6x).
Next Steps
Future Growth
How is PS Business Parks forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
-5.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PSB's earnings are forecast to decline over the next 3 years (-5.9% per year).
Earnings vs Market: PSB's earnings are forecast to decline over the next 3 years (-5.9% per year).
High Growth Earnings: PSB's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PSB's revenue (1.5% per year) is forecast to grow slower than the US market (10.2% per year).
High Growth Revenue: PSB's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PSB's Return on Equity is forecast to be low in 3 years time (6.3%).
Next Steps
Past Performance
How has PS Business Parks performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PSB has a large one-off gain of $43.9M impacting its September 30 2020 financial results.
Growing Profit Margin: PSB's current net profit margins (30%) are higher than last year (26.3%).
Past Earnings Growth Analysis
Earnings Trend: PSB's earnings have grown by 12% per year over the past 5 years.
Accelerating Growth: PSB's earnings growth over the past year (11.1%) is below its 5-year average (12% per year).
Earnings vs Industry: PSB earnings growth over the past year (11.1%) exceeded the REITs industry 2.9%.
Return on Equity
High ROE: PSB's Return on Equity (11.2%) is considered low.
Next Steps
Financial Health
How is PS Business Parks's financial position?
Financial Position Analysis
Short Term Liabilities: PSB's short term assets ($157.0M) exceed its short term liabilities ($84.5M).
Long Term Liabilities: PSB's short term assets ($157.0M) exceed its long term liabilities ($3.3M).
Debt to Equity History and Analysis
Debt Level: PSB is debt free.
Reducing Debt: PSB has no debt compared to 5 years ago when its debt to equity ratio was 12.9%.
Debt Coverage: PSB has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: PSB 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?
3.06%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PSB's dividend (3.06%) is higher than the bottom 25% of dividend payers in the US market (1.38%).
High Dividend: PSB's dividend (3.06%) is low compared to the top 25% of dividend payers in the US market (3.84%).
Stability and Growth of Payments
Stable Dividend: PSB's dividends per share have been stable in the past 10 years.
Growing Dividend: PSB's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.2%), PSB's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PSB's dividends in 3 years are forecast to be covered by earnings (67.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
J.P. Petersen (56 yo)
0.75
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 ($USD4.98M).
Compensation vs Earnings: J.P.'s compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Interim President | 0.75yr | US$864.46k | 0.058% $ 2.7m | |
| Executive VP | 2.33yrs | US$761.96k | 0.0084% $ 387.2k | |
| Senior VP | 2.33yrs | US$411.96k | 0.021% $ 982.9k | |
| Director | 4.5yrs | US$956.96k | 0.15% $ 7.0m | |
| Vice President of Investments | no data | no data | no data | |
| Assistant Secretary | no data | no data | no data | |
| Property Manager of Miami International Commerce Center | 16.42yrs | no data | no data |
2.3yrs
Average Tenure
53.5yo
Average Age
Experienced Management: PSB's management team is considered experienced (2.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Director | 4.5yrs | US$956.96k | 0.15% $ 7.0m | |
| Director | 17.42yrs | US$46.20k | 0.12% $ 5.4m | |
| Chairman | 22.83yrs | US$118.00k | 0.57% $ 26.6m | |
| Independent Director | 22.83yrs | US$122.50k | 0.054% $ 2.5m | |
| Independent Presiding Director | 1yr | US$186.81k | 0.0047% $ 219.5k | |
| Independent Director | 8.92yrs | US$176.52k | 0.0073% $ 337.2k | |
| Independent Director | 11.92yrs | US$306.48k | 0.0091% $ 420.1k | |
| Independent Director | 1.5yrs | US$310.60k | no data | |
| Independent Director | 8.92yrs | US$186.02k | 0.0044% $ 203.8k | |
| Independent Director | 1.5yrs | US$307.65k | 0.0026% $ 121.4k |
8.9yrs
Average Tenure
62.5yo
Average Age
Experienced Board: PSB's board of directors are considered experienced (8.9 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.
Recent Insider Transactions
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
- Exchange: NYSE
- Founded: 1990
- Industry: Diversified REITs
- Sector: Real Estate
- Implied Market Cap: US$4.632b
- Market Cap: US$3.771b
- Shares outstanding: 34.79m
- Website: https://www.psbusinessparks.com
Number of Employees
Location
- PS Business Parks, Inc.
- 701 Western Avenue
- Glendale
- California
- 91201
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PSB | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Mar 1998 |
| W8U | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Mar 1998 |
| PSB.PRW | NYSE (New York Stock Exchange) | DEP SHS RP PFD W | US | USD | Oct 2016 | |
| PSB.PRX | NYSE (New York Stock Exchange) | DEP SHS RP PFD X | US | USD | Sep 2017 | |
| PSB.PRY | NYSE (New York Stock Exchange) | DEP SHS RP PFD Y | US | USD | Dec 2017 | |
| PSB.PRZ | NYSE (New York Stock Exchange) | 4.875% CUM PFD Z | US | USD | Oct 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 Septem...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:05 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.