NYSE:PSB

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

Fundamentals

Average dividend payer with acceptable 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


Market Performance


7 Day Return

0.5%

PSB

1.5%

US REITs

0.5%

US Market


1 Year Return

48.1%

PSB

20.3%

US REITs

6.8%

US Market

Return vs Industry: PSB exceeded the US REITs industry which returned 20.3% over the past year.

Return vs Market: PSB exceeded the US Market which returned 6.8% over the past year.


Shareholder returns

PSBIndustryMarket
7 Day0.5%1.5%0.5%
30 Day2.0%1.7%-0.8%
90 Day6.2%7.6%-0.9%
1 Year52.1%48.1%25.7%20.3%9.2%6.8%
3 Year86.0%71.3%35.8%18.5%45.6%36.2%
5 Year165.0%122.7%64.6%29.8%63.2%45.4%

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?

45.16x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PSB ($184.01) is trading above our estimate of fair value ($152.5)

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


Price To Earnings Ratio

PE vs Industry: PSB is poor value based on its PE Ratio (45.2x) compared to the REITs industry average (36.2x).

PE vs Market: PSB is poor value based on its PE Ratio (45.2x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PSB's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PSB is overvalued based on its PB Ratio (6.3x) 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?

-1.0%

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 (-1% per year).

Earnings vs Market: PSB's earnings are forecast to decline over the next 3 years (-1% per year).

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

Revenue vs Market: PSB's revenue (0.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: PSB's revenue (0.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PSB'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?

13.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PSB's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: PSB'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 had negative earnings growth (-28.3%) over the past year, making it difficult to compare to the REITs industry average (17.6%).


Return on Equity

High ROE: PSB's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: PSB has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: PSB has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PS Business Parks's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: PSB has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PSB's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: PSB's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if PSB has a sufficient allowance for bad loans.

Low Risk Liabilities: PSB reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if PSB has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PSB has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if PSB has an appropriate level of bad loans.


Next Steps

Dividend

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

2.28%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years2.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PSB's dividend (2.28%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: PSB's dividend (2.28%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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: With its reasonable payout ratio (71.2%), PSB'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

What is the CEO of PS Business Parks's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Maria Hawthorne (59yo)

3.3yrs

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 ($USD3.77M) is below average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

3.3yrs

Average Tenure

55.5yo

Average Age

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


Board Age and Tenure

6.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: PSB's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

Insider Buying: PSB insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$325,23010 Sep 19
Joseph Russell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,800
Max PriceUS$180.68
SellUS$101,42413 Jun 19
John Petersen
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares600
Max PriceUS$169.04
SellUS$207,81903 Jun 19
Joseph Russell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,300
Max PriceUS$159.86
SellUS$156,30228 May 19
John Petersen
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares947
Max PriceUS$165.05
SellUS$325,36724 May 19
Joseph Russell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,000
Max PriceUS$162.68
SellUS$320,02022 May 19
Trenton Groves
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares2,000
Max PriceUS$160.01
SellUS$261,19515 May 19
John Petersen
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,666
Max PriceUS$156.78
SellUS$390,85119 Mar 19
Joseph Russell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$156.34
SellUS$347,91612 Dec 18
Joseph Russell
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,500
Max PriceUS$139.17
SellUS$707,50004 Dec 18
Havner Family Foundation, Endowment Arm
EntityCompany
Shares5,000
Max PriceUS$141.50
SellUS$197,20030 Nov 18
John Petersen
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares1,420
Max PriceUS$138.87
SellUS$2,061,80320 Nov 18
Havner Family Foundation, Endowment Arm
EntityCompany
Shares15,000
Max PriceUS$137.55
SellUS$1,363,75015 Nov 18
Havner Family Foundation, Endowment Arm
EntityCompany
Shares10,000
Max PriceUS$136.38

Ownership Breakdown


Management Team

  • Maria Hawthorne (59yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$3.77m
  • Coby Holley (50yo)

    Vice President of Investments

    • Tenure: 0yrs
  • Bob Murphy

    Property Manager of Miami International Commerce Center

    • Tenure: 15.2yrs
  • John Petersen (55yo)

    Executive VP & COO

    • Tenure: 14.8yrs
    • Compensation: US$721.80k
  • Trenton Groves

    Senior VP

    • Tenure: 1.1yrs
    • Compensation: US$570.03k
  • Lily Hughes (56yo)

    Assistant Secretary

    • Tenure: 0yrs
  • Jeff Hedges

    Executive VP

    • Tenure: 1.1yrs
    • Compensation: US$1.90m

Board Members

  • Joe Russell (59yo)

    Director

    • Tenure: 16.2yrs
    • Compensation: US$36.22k
  • Ron Havner (61yo)

    Chairman

    • Tenure: 21.6yrs
    • Compensation: US$66.62k
  • Jim Kropp (70yo)

    Presiding Independent Director

    • Tenure: 0.7yrs
    • Compensation: US$104.62k
  • Maria Hawthorne (59yo)

    President

    • Tenure: 3.3yrs
    • Compensation: US$3.77m
  • Bob Rollo (71yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$92.97k
  • Gary Pruitt (69yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$93.02k
  • Jennifer Dunbar (56yo)

    Independent Director

    • Tenure: 10.7yrs
    • Compensation: US$105.12k
  • Steve Wilson (62yo)

    Director

    • Tenure: 0.3yrs
  • Peter Schultz (71yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$102.02k
  • Kristy Pipes (60yo)

    Director

    • Tenure: 0.3yrs

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$6.392b
  • Market Cap: US$5.048b
  • 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

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 June 30, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/20 23:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.