NYSE:PSB

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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. More Details


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.6%

PSB

-5.0%

US REITs

-5.3%

US Market


1 Year Return

-37.3%

PSB

-18.4%

US REITs

10.4%

US Market

Return vs Industry: PSB underperformed the US REITs industry which returned -18% over the past year.

Return vs Market: PSB underperformed the US Market which returned 12% over the past year.


Shareholder returns

PSBIndustryMarket
7 Day-3.6%-5.0%-5.3%
30 Day-6.8%-4.6%-2.1%
90 Day-17.3%-6.5%1.7%
1 Year-35.3%-37.3%-15.1%-18.4%12.9%10.4%
3 Year-7.1%-14.8%7.8%-4.9%34.3%25.4%
5 Year54.7%34.2%36.0%8.8%73.7%54.3%

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

Valuation

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

7.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PSB ($114.03) is trading below our estimate of fair value ($122.7)

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 (25x) compared to the US REITs industry average (34x).

PE vs Market: PSB is poor value based on its PE Ratio (25x) compared to the US market (18.1x).


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 (3.9x) 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 2 analysts?

-0.3%

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 (-0.3% per year).

Earnings vs Market: PSB's earnings are forecast to decline over the next 3 years (-0.3% per year).

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

Revenue vs Market: PSB's revenue (1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PSB's revenue (1% 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 (7%).


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 8.1%.


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?

3.68%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PSB's dividend (3.68%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: PSB's dividend (3.68%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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 (66.3% payout ratio).


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

J.P. Petersen (56 yo)

0.50

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 ($USD864.46K) is below average for companies of similar size in the US market ($USD5.63M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Petersen
Interim President0.50yrUS$864.46k0.058%
$ 2.2m
Jeffrey Hedges
Executive VP2.08yrsUS$761.96k0.0084%
$ 323.7k
Trenton Groves
Senior VP2.08yrsUS$411.96k0.021%
$ 821.8k
Maria Hawthorne
Director4.25yrsUS$956.96k0.15%
$ 5.9m
Coby Holley
Vice President of Investmentsno datano datano data
Lily Hughes
Assistant Secretaryno datano datano data
Bob Murphy
Property Manager of Miami International Commerce Center16.17yrsno datano data

2.1yrs

Average Tenure

53.5yo

Average Age

Experienced Management: PSB's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Maria Hawthorne
Director4.25yrsUS$956.96k0.15%
$ 5.9m
Joseph Russell
Director17.17yrsUS$46.20k0.12%
$ 4.5m
Ronald Havner
Chairman22.58yrsUS$118.00k0.57%
$ 22.2m
James Kropp
Independent Director22.58yrsUS$122.50k0.054%
$ 2.1m
Robert Rollo
Independent Presiding Director0.75yrUS$186.81k0.0047%
$ 183.6k
Gary Pruitt
Independent Director8.58yrsUS$176.52k0.0073%
$ 281.9k
Jennifer Dunbar
Independent Director11.58yrsUS$306.48k0.0091%
$ 351.2k
Stephen Wilson
Independent Director1.25yrsUS$310.60kno data
Peter Schultz
Independent Director8.58yrsUS$186.02k0.0044%
$ 170.4k
Kristy Pipes
Independent Director1.25yrsUS$307.65k0.0026%
$ 101.5k

8.6yrs

Average Tenure

62.5yo

Average Age

Experienced Board: PSB's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PSB insiders have only sold shares 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$3.873b
  • Market Cap: US$3.059b
  • 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

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% CUM 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 Septem ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 23:58
End of Day Share Price2020/10/30 00:00
Earnings2020/09/30
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.