PS Business Parks Inc. said its earnings and revenue increased in the fourth quarter largely due to rental fees from newly acquired commercial properties.
The Glendale real estate investment trust reported net income of $26.5 million (37 cents a share) in the quarter ended Dec. 31, compared to $22 million (36 cents) in the same period a year earlier. Revenue rose 19.6 percent to $89.4 million.
The company also reported funds from operations of $1.20, up from $1.13 a year earlier. The figure met the consensus estimate of three analysts polled by Thomson/First Call. FFO is a key REIT metric that adds amortization and depreciation expenses back into net income to get a better picture of cash flow.
PS Business Parks develops and operates multi-tenant flex, office and industrial properties.
The company acquired three multi-tenant flex buildings in Austin, Texas, adding 226,000 square feet of space to its portfolio. At the end of December, the company owned 28.3 million rentable square feet in eight states.
Shares were up 24 cents, or less than 1 percent, to $73.81 in afternoon trading on the Nasdaq.