PS Business Parks Inc. announced fourth quarter earnings that beat analysts’ expectations, while increasing its dividend.
The Glendale real estate investment trust reported funds from operations of $41.9 million ($1.26 a share) in the quarter ended Dec. 31, compared to $39.3 million ($1.24) in the same period a year earlier. Revenue rose more than 4 percent to $91.2 million.
FFO is a key REIT metric that adds amortization and depreciation expenses back into net income to get a better picture of cash flow.
Analysts on average expected FFO of $1.21 a share on revenue of $89.7 million, according to Thomson Financial.
In the earning report released Tuesday afternoon, PS Business Parks announced a 6 cent increase in its quarterly dividend. The dividend of 50 cents a share will be payable March 31 to shareholders of record on March 14.
For the year, the company reported funds from operations of $159.4 million ($4.95 a share), compared to $157.2 million ($4.86) in 2012. Revenue rose 3.5 percent to $357 million.
Analysts on average expected FFO of $4.80 a share on revenue of $355 million, according to Thomson Financial.
PS Business Parks develops and operates multi-tenant flex, office and industrial properties. The company's portfolio totals more than 29 million rentable square feet in eight states.
Shares closed up 99 cents Wednesday, or about 1.2 percent, to $81.34 on the New York Stock Exchange.