PS Business Parks Holding Steady

Oct 03, 2008 (Zacks Investment Research via COMTEX) -- PSB | Quote | Chart | News | PowerRating -- PS Business Parks, Inc. (PSB) is a self-advised and self-managed equity real estate investment trust (REIT) whose property portfolio includes low-rise suburban multi-tenant offices, business parks, and industrial and flex space (a combination of warehouse and office space). The company currently owns approximately 19.6 million rentable square feet of commercial space with approximately 3,850 customers across eight states. Most of the company's markets reported rental rate increases on new leases, a positive sign in a rapidly weakening economy. PSB has a strong balance sheet with low debt levels. The dividend, while low compared to peers, is adequately covered by operating cash. In addition, PSB has plenty of cash and availability under its line to be active in the acquisitions market. We rate the shares a Hold mainly due to macroeconomic factors. PSB has 10% of its portfolio up for renewal through the end of the year. With declining fundamentals, we expect a much tougher leasing environment over the next couple of quarters. Read the full analyst report on PSB

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