GLENDALE, Calif. -- (Business Wire)
PS Business Parks, Inc. (NYSE:PSB) reported operating results for the
second quarter ended June 30, 2015.
Funds from operations (“FFO”) were $41.2 million, or $1.20 per share for
the three months ended June 30, 2015, an increase of $389,000 from the
three months ended June 30, 2014 of $40.8 million, or $1.19 per share.
FFO was $80.2 million, or $2.33 per share for the six months ended June
30, 2015, a decrease of $1.8 million from the six months ended June 30,
2014 of $81.9 million, or $2.39 per share. The three month increase in
FFO was primarily the result of a $4.4 million increase in net operating
income (“NOI”) resulting from both the Same Park and Non-Same Park
portfolios. These increases were partially offset by a decrease in NOI
from assets sold. The six month decrease in FFO was due to a decrease in
NOI from assets sold partially offset by higher NOI from both the Same
Park and Non-Same Park portfolios.
Same Park NOI increased $2.4 million, or 4.2%, for the three months
ended June 30, 2015 and $4.0 million, or 3.6%, for the six months ended
June 30, 2015 compared to the same periods in 2014. Same Park rental
income increased $3.0 million, or 3.6%, from $83.0 million for the three
months ended June 30, 2014 to $86.0 million for the three months ended
June 30, 2015. Same Park rental income increased $4.2 million, or 2.5%,
from $167.0 million for the six months ended June 30, 2014 to $171.2
million for the six months ended June 30, 2015. The three and six month
increases were primarily a result of increases in occupancy and rental
rates.
Non-Same Park NOI increased $2.0 million, or 121.5%, for the three
months ended June 30, 2015 and $3.1 million, or 78.5%, for the six
months ended June 30, 2015 compared to the same periods in 2014 as a
result of an increase in occupancy and the acquisition of additional
parks during the latter half of 2014.
Net income allocable to common shareholders increased $1.3 million, or
13.3%, from $9.8 million, or $0.36 per share, for the three months ended
June 30, 2014 to $11.1 million, or $0.41 per share, for the three months
ended June 30, 2015. The increase was primarily the result of a decrease
in depreciation of $1.3 million. Net income allocable to common
shareholders increased $11.1 million, or 56.3%, from $19.8 million, or
$0.73 per share, for the six months ended June 30, 2014 to
$30.9 million, or $1.14 per share, for the six months ended June 30,
2015. The increase was primarily due to the gain on sale of real estate
facilities of $12.5 million and an increase in NOI from both the Same
Park and Non-Same Park portfolios of $7.2 million offset by a decrease
in NOI from assets sold.
All per share amounts noted above are presented on a diluted basis.
Property Operations
To evaluate the performance of the Company’s portfolio over comparable
periods, management analyzes the operating performance of properties
owned and operated throughout both periods (herein referred to as “Same
Park”). The Same Park portfolio includes all operating properties owned
or acquired prior to January 1, 2013 (excluding 390,000 square feet of
assets held for sale as of June 30, 2015). Operating properties that the
Company acquired subsequent to January 1, 2013 are referred to as
“Non-Same Park.” For the three and six months ended June 30, 2015 and
2014, the Same Park facilities constitute 25.8 million rentable square
feet, representing 90.8% of the 28.4 million square feet in the
Company’s total portfolio as of June 30, 2015.
The following table presents the operating results of the Company’s
properties for the three and six months ended June 30, 2015 and 2014 in
addition to other income and expense items affecting net income
(unaudited, in thousands, except per square foot amounts):
|
|
|
| | |
|
| | |
|
| |
|
|
| | |
|
| | |
|
| |
| | | | For the Three Months | | | | | | | For the Six Months | | | |
| | | | Ended June 30, | | | | | | | Ended June 30, | | | |
| | | | 2015 | | | 2014 | | | Change | | | | 2015 | | | 2014 | | | Change |
Rental income:
| | | | | | | | | | | | | | | | | | | | | | | | |
Same Park (25.8 million rentable square feet)
| | | |
$
|
85,970
| | |
$
|
83,018
| | |
3.6%
| | | |
$
|
171,189
| | |
$
|
167,039
| | |
2.5%
|
Non-Same Park (2.2 million rentable square feet)
| | | |
|
6,000
| | |
|
3,544
| | |
69.3%
| | | |
|
11,708
| | |
|
7,494
| | |
56.2%
|
Total rental income
| | | |
|
91,970
| | |
|
86,562
| | |
6.2%
| | | |
|
182,897
| | |
|
174,533
| | |
4.8%
|
Cost of operations:
| | | | | | | | | | | | | | | | | | | | | | | | |
Same Park
| | | | |
26,585
| | | |
26,028
| | |
2.1%
| | | | |
54,700
| | | |
54,561
| | |
0.3%
|
Non-Same Park
| | | |
|
2,266
| | |
|
1,858
| | |
22.0%
| | | |
|
4,553
| | |
|
3,485
| | |
30.6%
|
Total cost of operations
| | | |
|
28,851
| | |
|
27,886
| | |
3.5%
| | | |
|
59,253
| | |
|
58,046
| | |
2.1%
|
Net operating income (1):
| | | | | | | | | | | | | | | | | | | | | | | | |
Same Park
| | | | |
59,385
| | | |
56,990
| | |
4.2%
| | | | |
116,489
| | | |
112,478
| | |
3.6%
|
Non-Same Park
| | | |
|
3,734
| | |
|
1,686
| | |
121.5%
| | | |
|
7,155
| | |
|
4,009
| | |
78.5%
|
Total net operating income
| | | |
|
63,119
| | |
|
58,676
| | |
7.6%
| | | |
|
123,644
| | |
|
116,487
| | |
6.1%
|
Other:
| | | | | | | | | | | | | | | | | | | | | | | | |
Net operating income from assets held for sale or sold (2) | | | | |
551
| | | |
4,631
| | |
(88.1%)
| | | | |
1,327
| | | |
9,026
| | |
(85.3%)
|
LTEIP amortization (3):
| | | | | | | | | | | | | | | | | | | | | | | | |
Cost of operations
| | | | |
(779)
| | | |
(856)
| | |
(9.0%)
| | | | |
(1,511)
| | | |
(1,185)
| | |
27.5%
|
General and administrative
| | | | |
(1,642)
| | | |
(1,518)
| | |
8.2%
| | | | |
(3,000)
| | | |
(2,047)
| | |
46.6%
|
Facility management fees
| | | | |
133
| | | |
165
| | |
(19.4%)
| | | | |
280
| | | |
331
| | |
(15.4%)
|
Other income and expense
| | | | |
(3,193)
| | | |
(3,308)
| | |
(3.5%)
| | | | |
(6,409)
| | | |
(6,622)
| | |
(3.2%)
|
Depreciation and amortization
| | | | |
(27,025)
| | | |
(28,295)
| | |
(4.5%)
| | | | |
(53,258)
| | | |
(56,736)
| | |
(6.1%)
|
General and administrative
| | | | |
(1,855)
| | | |
(1,845)
| | |
0.5%
| | | | |
(3,896)
| | | |
(3,803)
| | |
2.4%
|
Gain on sale of real estate facilities
| | | |
|
—
| | |
|
—
| | |
0.0%
| | | |
|
12,487
| | |
|
—
| | |
100.0%
|
Net income
| | | |
$
|
29,309
| | |
$
|
27,650
| | |
6.0%
| | | |
$
|
69,664
| | |
$
|
55,451
| | |
25.6%
|
Same Park gross margin (4) | | | | |
69.1%
| | | |
68.6%
| | |
0.7%
| | | | |
68.0%
| | | |
67.3%
| | |
1.0%
|
Same Park weighted average occupancy
| | | | |
93.1%
| | | |
92.2%
| | |
1.0%
| | | | |
92.9%
| | | |
92.0%
| | |
1.0%
|
Non-Same Park weighted average occupancy
| | | | |
82.8%
| | | |
75.9%
| | |
9.1%
| | | | |
81.0%
| | | |
74.7%
| | |
8.4%
|
Same Park annualized realized rent per square foot (5) | | | |
$
|
14.34
| | |
$
|
13.98
| | |
2.6%
| | | |
$
|
14.31
| | |
$
|
14.09
| | |
1.6%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
(1) |
|
|
NOI is an important measurement in the commercial real estate
industry for determining the value of the real estate generating the
NOI. The Company’s calculation of NOI may not be comparable to those
of other companies and should not be used as an alternative to
measures of performance in accordance with generally accepted
accounting principles (“GAAP”).
|
(2) | | |
The Company sold one business park located in Milwaukie, Oregon, on
February 13, 2015 and five buildings located in Redmond, Washington,
on February 27, 2015. Combined with the business parks in Beaverton,
Oregon, and Phoenix, Arizona, sold in 2014 and the assets held for
sale in Tempe, Arizona, and Sacramento, California, these assets
generated rental income of $978,000 and $2.4 million for the three
and six months ended June 30, 2015, respectively, compared to $7.4
million and $14.8 million for the three and six months ended June
30, 2014, respectively. Cost of operations for the assets held for
sale or sold was $427,000 and $1.0 million for the three and six
months ended June 30, 2015, respectively, compared to $2.8 million
and $5.7 million for the three and six months ended June 30, 2014,
respectively.
|
(3) | | |
Senior Management Long-Term Equity Incentive Plan (“LTEIP”).
|
(4) | | |
Computed by dividing Same Park NOI by Same Park rental income.
|
(5) | | |
Represents the annualized Same Park rental income earned per
occupied square foot.
|
| | |
|
Property Dispositions
In July, 2015, the Company disposed of North Pointe Business Park
located in Sacramento, California, for net proceeds of $17.4 million.
The parks consist of five multi-tenant flex buildings aggregating
213,000 square feet and was 75.7% leased as of June 30, 2015.
Financial Condition
The following are key financial ratios with respect to the Company’s
leverage as of and for the six months ended June 30, 2015:
|
|
|
|
|
|
|
|
|
| |
Ratio of FFO to fixed charges (1) | | | | | | | | | |
16.6x
|
| | | | | | | | | |
|
Ratio of FFO to fixed charges and preferred distributions (1) | | | | | | | | | |
3.2x
|
| | | | | | | | | |
|
Debt and preferred equity to total market capitalization (based on
common stock price of $72.15 at June 30, 2015)
| | | | | | | | | |
33.5%
|
| | | | | | | | | |
|
Available balance under the $250.0 million unsecured credit facility
at June 30, 2015
| | | | | | | | | |
$250.0 million
|
| | | | | | | | | |
|
(1) |
|
|
Fixed charges include interest expense and capitalized interest
totaling $3.6 million.
|
| | |
|
Distributions Declared
On July 28, 2015, the Board of Directors declared a quarterly dividend
of $0.60 per common share, an increase of 20.0%, from $0.50 per common
share. Distributions were also declared on the various series of
depositary shares, each representing 1/1,000 of a share of preferred
stock listed below. Distributions are payable on September 30, 2015 to
shareholders of record on September 15, 2015.
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Series | | | | | | | | Dividend Rate | | | | | | | | | Dividend Declared |
| | | | | | | | | | | | | | | | |
|
Series R
| | | | | | | |
6.875%
| | | | | | | | |
$0.429688
|
Series S
| | | | | | | |
6.450%
| | | | | | | | |
$0.403125
|
Series T
| | | | | | | |
6.000%
| | | | | | | | |
$0.375000
|
Series U
| | | | | | | |
5.750%
| | | | | | | | |
$0.359375
|
Series V
| | | | | | | |
5.700%
| | | | | | | | |
$0.356250
|
| | | | | | | | | | | | | | | | |
|
Company Information
PS Business Parks, Inc., a member of the S&P SmallCap 600, is a
self-advised and self-managed real estate investment trust (“REIT”) that
acquires, develops, owns and operates commercial properties, primarily
multi-tenant flex, office and industrial space. The Company defines
“flex” space as buildings that are configured with a combination of
office and warehouse space and can be designed to fit a number of uses
(including office, assembly, showroom, laboratory, light manufacturing
and warehouse space). As of June 30, 2015, the Company wholly owned
28.4 million rentable square feet with approximately 4,900 customers
concentrated primarily in six states.
Forward-Looking Statements
When used within this press release, the words “may,” “believes,”
“anticipates,” “plans,” “expects,” “seeks,” “estimates,” “intends” and
similar expressions are intended to identify “forward-looking
statements.” Such forward-looking statements involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results and performance of the Company to be materially different from
those expressed or implied in the forward-looking statements. Such
factors include the impact of competition from new and existing
commercial facilities which could impact rents and occupancy levels at
the Company’s facilities; the Company’s ability to evaluate, finance and
integrate acquired and developed properties into the Company’s existing
operations; the Company’s ability to effectively compete in the markets
that it does business in; the impact of the regulatory environment as
well as national, state and local laws and regulations including,
without limitation, those governing REITs; the impact of general
economic conditions upon rental rates and occupancy levels at the
Company’s facilities; the availability of permanent capital at
attractive rates, the outlook and actions of Rating Agencies and risks
detailed from time to time in the Company’s SEC reports, including
quarterly reports on Form 10-Q, reports on Form 8-K and annual reports
on Form 10-K.
Additional information about PS Business Parks, Inc., including more
financial analysis of the second quarter operating results, is available
on the Internet. The Company’s website is psbusinessparks.com.
A conference call is scheduled for Wednesday, July 29, 2015, at 8:00
a.m. (PDT) to discuss the second quarter results. The toll free number
is (888) 299-3246; the conference ID is 80668254. The call will also be
available via a live webcast on the Company’s website. A replay of the
conference call will be available through August 4, 2015 at
(855) 859-2056. A replay of the conference call will also be available
on the Company’s website.
Additional financial data attached.
|
|
|
| | |
|
|
|
|
|
|
|
| | |
PS BUSINESS PARKS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
|
| | | | | | | | | | | | | | |
|
| | | | June 30, | | | | | | | | | December 31, |
| | | | 2015 | | | | | | | | | 2014 |
| | | | (Unaudited) | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
Cash and cash equivalents
| | | |
$
|
200,194
| | | | | | | | | |
$
|
152,467
| |
| | | | | | | | | | | | | | |
|
Real estate facilities, at cost:
| | | | | | | | | | | | | | | |
Land
| | | | |
793,569
| | | | | | | | | | |
793,569
| |
Buildings and improvements
| | | |
|
2,200,094
|
| | | | | | | | |
|
2,182,993
|
|
| | | | |
2,993,663
| | | | | | | | | | |
2,976,562
| |
Accumulated depreciation
| | | |
|
(1,036,023
|
)
| | | | | | | | |
|
(991,497
|
)
|
| | | | |
1,957,640
| | | | | | | | | | |
1,985,065
| |
Properties held for disposition, net
| | | | |
14,267
| | | | | | | | | | |
25,937
| |
Land and building held for development
| | | |
|
26,288
|
| | | | | | | | |
|
24,442
|
|
| | | | |
1,998,195
| | | | | | | | | | |
2,035,444
| |
Rent receivable, net
| | | | |
4,538
| | | | | | | | | | |
2,838
| |
Deferred rent receivable, net
| | | | |
28,199
| | | | | | | | | | |
26,050
| |
Other assets
| | | |
|
8,493
|
| | | | | | | | |
|
10,315
|
|
| | | | | | | | | | | | | | |
|
Total assets
| | | |
$
|
2,239,619
|
| | | | | | | | |
$
|
2,227,114
|
|
| | | | | | | | | | | | | | |
|
LIABILITIES AND EQUITY | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
Accrued and other liabilities
| | | |
$
|
70,014
| | | | | | | | | |
$
|
68,905
| |
Mortgage note payable
| | | |
|
250,000
|
| | | | | | | | |
|
250,000
|
|
Total liabilities
| | | | |
320,014
| | | | | | | | | | |
318,905
| |
| | | | | | | | | | | | | | |
|
Commitments and contingencies
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
|
Equity:
| | | | | | | | | | | | | | | |
PS Business Parks, Inc.’s shareholders’ equity:
| | | | | | | | | | | | | | | |
Preferred stock, $0.01 par value, 50,000,000 shares authorized,
39,800 shares issued and outstanding at June 30, 2015 and December
31, 2014
| | | | |
995,000
| | | | | | | | | | |
995,000
| |
Common stock, $0.01 par value, 100,000,000 shares authorized,
26,971,885 and 26,919,161 shares issued and outstanding at June
30, 2015 and December 31, 2014, respectively
| | | | |
268
| | | | | | | | | | |
268
| |
Paid-in capital
| | | | |
714,182
| | | | | | | | | | |
709,008
| |
Cumulative net income
| | | | |
1,306,231
| | | | | | | | | | |
1,244,946
| |
Cumulative distributions
| | | |
|
(1,293,133
|
)
| | | | | | | | |
|
(1,235,941
|
)
|
Total PS Business Parks, Inc.’s shareholders’ equity
| | | | |
1,722,548
| | | | | | | | | | |
1,713,281
| |
| | | | | | | | | | | | | | |
|
Noncontrolling interests:
| | | | | | | | | | | | | | | |
Common units
| | | |
|
197,057
|
| | | | | | | | |
|
194,928
|
|
Total noncontrolling interests
| | | |
|
197,057
|
| | | | | | | | |
|
194,928
|
|
Total equity
| | | |
|
1,919,605
|
| | | | | | | | |
|
1,908,209
|
|
| | | | | | | | | | | | | | |
|
Total liabilities and equity
| | | |
$
|
2,239,619
|
| | | | | | | | |
$
|
2,227,114
|
|
| | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | |
|
|
|
|
| | |
|
|
| | |
|
|
| | |
|
|
| | |
PS BUSINESS PARKS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited, in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | For the Three Months | | | | For the Six Months |
| | | | Ended June 30, | | | | Ended June 30, |
| | | | 2015 | | | | 2014 | | | | 2015 | | | | 2014 |
Revenues:
| | | | | | | | | | | | | | | | | | | | |
Rental income
| | | |
$
|
92,948
| | | | |
$
|
93,986
| | | | |
$
|
185,263
| | | | |
$
|
189,307
| |
Facility management fees
| | | |
|
133
|
| | | |
|
165
|
| | | |
|
280
|
| | | |
|
331
|
|
Total operating revenues
| | | |
|
93,081
|
| | | |
|
94,151
|
| | | |
|
185,543
|
| | | |
|
189,638
|
|
Expenses:
| | | | | | | | | | | | | | | | | | | | |
Cost of operations
| | | | |
30,057
| | | | | |
31,535
| | | | | |
61,803
| | | | | |
64,979
| |
Depreciation and amortization
| | | | |
27,025
| | | | | |
28,295
| | | | | |
53,258
| | | | | |
56,736
| |
General and administrative
| | | |
|
3,497
|
| | | |
|
3,363
|
| | | |
|
6,896
|
| | | |
|
5,850
|
|
Total operating expenses
| | | |
|
60,579
|
| | | |
|
63,193
|
| | | |
|
121,957
|
| | | |
|
127,565
|
|
Other income and (expense):
| | | | | | | | | | | | | | | | | | | | |
Interest and other income
| | | | |
145
| | | | | |
95
| | | | | |
252
| | | | | |
157
| |
Interest and other expense
| | | |
|
(3,338
|
)
| | | |
|
(3,403
|
)
| | | |
|
(6,661
|
)
| | | |
|
(6,779
|
)
|
Total other income and (expense)
| | | |
|
(3,193
|
)
| | | |
|
(3,308
|
)
| | | |
|
(6,409
|
)
| | | |
|
(6,622
|
)
|
| | | | | | | | | | | | | | | | | | | |
|
Gain on sale of real estate facilities
| | | | |
—
| | | | | |
—
| | | | | |
12,487
| | | | | |
—
| |
| | | |
|
| | | |
|
| | | |
|
| | | |
|
|
Net income
| | | |
$
|
29,309
|
| | | |
$
|
27,650
|
| | | |
$
|
69,664
|
| | | |
$
|
55,451
|
|
| | | | | | | | | | | | | | | | | | | |
|
Net income allocation:
| | | | | | | | | | | | | | | | | | | | |
Net income allocable to noncontrolling interests:
| | | | | | | | | | | | | | | | | | | | |
Noncontrolling interests—common units
| | | |
$
|
3,016
|
| | | |
$
|
2,669
|
| | | |
$
|
8,379
|
| | | |
$
|
5,372
|
|
Total net income allocable to noncontrolling interests
| | | |
|
3,016
|
| | | |
|
2,669
|
| | | |
|
8,379
|
| | | |
|
5,372
|
|
Net income allocable to PS Business Parks, Inc.:
| | | | | | | | | | | | | | | | | | | | |
Preferred shareholders
| | | | |
15,122
| | | | | |
15,122
| | | | | |
30,244
| | | | | |
30,244
| |
Restricted stock unit holders
| | | | |
42
| | | | | |
33
| | | | | |
140
| | | | | |
69
| |
Common shareholders
| | | |
|
11,129
|
| | | |
|
9,826
|
| | | |
|
30,901
|
| | | |
|
19,766
|
|
Total net income allocable to PS Business Parks, Inc.
| | | |
|
26,293
|
| | | |
|
24,981
|
| | | |
|
61,285
|
| | | |
|
50,079
|
|
| | | |
$
|
29,309
|
| | | |
$
|
27,650
|
| | | |
$
|
69,664
|
| | | |
$
|
55,451
|
|
| | | | | | | | | | | | | | | | | | | |
|
Net income per common share:
| | | | | | | | | | | | | | | | | | | | |
Basic
| | | |
$
|
0.41
| | | | |
$
|
0.37
| | | | |
$
|
1.15
| | | | |
$
|
0.74
| |
Diluted
| | | |
$
|
0.41
| | | | |
$
|
0.36
| | | | |
$
|
1.14
| | | | |
$
|
0.73
| |
| | | | | | | | | | | | | | | | | | | |
|
Weighted average common shares outstanding:
| | | | | | | | | | | | | | | | | | | | |
Basic
| | | |
|
26,956
|
| | | |
|
26,899
|
| | | |
|
26,941
|
| | | |
|
26,881
|
|
Diluted
| | | |
|
27,033
|
| | | |
|
26,999
|
| | | |
|
27,027
|
| | | |
|
26,981
|
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
| | |
|
|
| | |
|
|
| | |
|
|
| | |
PS BUSINESS PARKS, INC.
Computation of Diluted Funds from Operations and Funds Available
for Distribution
(Unaudited, in thousands, except per share amounts)
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | For the Three Months | | | | For the Six Months |
| | | | Ended June 30, | | | | Ended June 30, |
| | | | 2015 | | | | 2014 | | | | 2015 | | | | 2014 |
Computation of Diluted Funds From
Operations (1): | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
Net income allocable to common shareholders
| | | |
$
|
11,129
| | | | |
$
|
9,826
| | | | |
$
|
30,901
| | | | |
$
|
19,766
| |
Adjustments:
| | | | | | | | | | | | | | | | | | | | |
Gain on sale of real estate facilities
| | | | |
—
| | | | | |
—
| | | | | |
(12,487
|
)
| | | | |
—
| |
Depreciation and amortization
| | | | |
27,025
| | | | | |
28,295
| | | | | |
53,258
| | | | | |
56,736
| |
Net income allocable to noncontrolling interests—common units
| | | | |
3,016
| | | | | |
2,669
| | | | | |
8,379
| | | | | |
5,372
| |
Net income allocable to restricted stock unit holders
| | | |
|
42
|
| | | |
|
33
|
| | | |
|
140
|
| | | |
|
69
|
|
FFO allocable to common and dilutive shares
| | | |
$
|
41,212
|
| | | |
$
|
40,823
|
| | | |
$
|
80,191
|
| | | |
$
|
81,943
|
|
| | | | | | | | | | | | | | | | | | | |
|
Weighted average common shares outstanding
| | | | |
26,956
| | | | | |
26,899
| | | | | |
26,941
| | | | | |
26,881
| |
Weighted average common OP units outstanding
| | | | |
7,305
| | | | | |
7,305
| | | | | |
7,305
| | | | | |
7,305
| |
Weighted average restricted stock units outstanding
| | | | |
110
| | | | | |
56
| | | | | |
114
| | | | | |
56
| |
Weighted average common share equivalents outstanding
| | | |
|
77
|
| | | |
|
100
|
| | | |
|
86
|
| | | |
|
100
|
|
Total common and dilutive shares
| | | |
|
34,448
|
| | | |
|
34,360
|
| | | |
|
34,446
|
| | | |
|
34,342
|
|
| | | | | | | | | | | | | | | | | | | |
|
Net income per common share—diluted
| | | |
$
|
0.41
| | | | |
$
|
0.36
| | | | |
$
|
1.14
| | | | |
$
|
0.73
| |
Depreciation and amortization (2) | | | | |
0.79
| | | | | |
0.83
| | | | | |
1.55
| | | | | |
1.66
| |
Gain on sale of real estate facilities (2) | | | |
|
—
|
| | | |
|
—
|
| | | |
|
(0.36
|
)
| | | |
|
—
|
|
FFO per common and dilutive share, as reported (2) | | | |
$
|
1.20
|
| | | |
$
|
1.19
|
| | | |
$
|
2.33
|
| | | |
$
|
2.39
|
|
| | | | | | | | | | | | | | | | | | | |
|
Computation of Funds Available for
Distribution ("FAD") (3): | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
FFO allocable to common and dilutive shares
| | | |
$
|
41,212
| | | | |
$
|
40,823
| | | | |
$
|
80,191
| | | | |
$
|
81,943
| |
| | | | | | | | | | | | | | | | | | | |
|
Adjustments:
| | | | | | | | | | | | | | | | | | | | |
Recurring capital improvements
| | | | |
(2,764
|
)
| | | | |
(2,534
|
)
| | | | |
(3,881
|
)
| | | | |
(3,781
|
)
|
Tenant improvements
| | | | |
(6,425
|
)
| | | | |
(6,348
|
)
| | | | |
(13,225
|
)
| | | | |
(11,538
|
)
|
Lease commissions
| | | | |
(2,717
|
)
| | | | |
(1,884
|
)
| | | | |
(4,285
|
)
| | | | |
(5,144
|
)
|
Straight-line rent
| | | | |
(1,159
|
)
| | | | |
(497
|
)
| | | | |
(2,192
|
)
| | | | |
(1,682
|
)
|
Non-cash stock compensation expense
| | | | |
213
| | | | | |
294
| | | | | |
526
| | | | | |
666
| |
Long-term equity incentive amortization
| | | | |
2,421
| | | | | |
2,374
| | | | | |
4,511
| | | | | |
3,232
| |
In-place lease adjustment
| | | | |
(352
|
)
| | | | |
(244
|
)
| | | | |
(663
|
)
| | | | |
(441
|
)
|
Tenant improvement reimbursements, net of lease incentives
| | | | |
(543
|
)
| | | | |
(401
|
)
| | | | |
(940
|
)
| | | | |
(839
|
)
|
Capitalized interest
| | | |
|
(271
|
)
| | | |
|
(233
|
)
| | | | |
(531
|
)
| | | |
|
(457
|
)
|
FAD
| | | |
$
|
29,615
|
| | | |
$
|
31,350
|
| | | |
$
|
59,511
|
| | | |
$
|
61,959
|
|
| | | | | | | | | | | | | | | | | | | |
|
Distributions to common and dilutive shares
| | | |
$
|
17,193
|
| | | |
$
|
17,135
|
| | | |
$
|
34,372
|
| | | |
$
|
34,267
|
|
| | | | | | | | | | | | | | | | | | | |
|
Distribution payout ratio
| | | |
|
58.1
|
%
| | | |
|
54.7
|
%
| | | |
|
57.8
|
%
| | | |
|
55.3
|
%
|
| | | | | | | | | | | | | | | | | | | |
|
(1) |
|
|
FFO is computed in accordance with the White Paper on FFO approved
by the Board of Governors of the National Association of Real Estate
Investment Trusts (“NAREIT”). The White Paper defines FFO as net
income, computed in accordance with GAAP, before depreciation,
amortization, gains or losses on asset dispositions, net income
allocable to noncontrolling interests—common units, net income
allocable to restricted stock unit holders, impairment charges and
nonrecurring items. FFO should be analyzed in conjunction with net
income. However, FFO should not be viewed as a substitute for net
income as a measure of operating performance or liquidity as it does
not reflect depreciation and amortization costs or the level of
capital expenditure and leasing costs necessary to maintain the
operating performance of the Company’s properties, which are
significant economic costs and could materially impact the Company’s
results from operations. Other REITs may use different methods for
calculating FFO and, accordingly, the Company’s FFO may not be
comparable to other real estate companies.
|
|
(2) | | |
Per share amounts are computed using additional dilutive shares
related to noncontrolling interests and restricted stock units.
|
|
(3) | | |
FAD is computed by adjusting consolidated FFO for recurring capital
improvements, which the Company defines as those costs incurred to
maintain the assets’ value, tenant improvements, lease commissions,
straight-line rent, stock compensation expense, in-place lease
adjustment, amortization of lease incentives and tenant improvement
reimbursements, capitalized interest and the effect of
redemption/repurchase of preferred equity. Like FFO, the Company
considers FAD to be a useful measure for investors to evaluate the
operations and cash flows of a REIT. FAD does not represent net
income or cash flow from operations as defined by GAAP.
|
| | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20150728006830/en/
Contacts:
PS Business Parks, Inc.
Edward A. Stokx
(818) 244-8080, Ext.
1649
Source: PS Business Parks, Inc.
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