Net Incomes Drops in Q4 at PS Business Parks

PS Business Parks Inc. had higher revenues but lower net income for the fourth quarter and full year of 2010, the Glendale-based equity real estate investment trust announced. For the fourth quarter of 2010 that ended Dec. 31, the company had net income of $8.4 million, or $0.34 per diluted share, on revenues of $71.4 million. For the same period in 2009, the company had net income of $9.9 million, or $0.40 per diluted share, on revenues of $67.7 million. For the full year of 2010 that ended Dec. 31, the company had net income of $39 million, or $1.58 per diluted share, on revenues of $279.1 million. For the full year of 2009, the company had net income of $59.4 million, or $2.68 per diluted share, on revenues of $271.7 million. Higher revenues for the fourth quarter in 2010 were a result of rental income from acquired properties of $6.4 million, partially offset by a decrease in revenues from the company’s same park portfolio of $2.7 million. That decrease was primarily due to a decrease in rental rate. The drop for the fourth quarter in net income was primarily due to non-cash distributions of $1.6 million related to the preferred equity redemption during that quarter combined with increases in depreciation expense and acquisition transaction costs. Those decreases were partially offset by an increase in net operating income and a reduction of preferred equity cash distributions as a result of preferred equity redemptions in 2010. The increase in revenues for the full year of 2010 were a result of rental income from acquired properties of $15.5 million, partially offset by a decrease in revenues from the company’s same park portfolio of $8 million due to a decrease in rental rates. The year’s decrease in net income was primarily due to the net gain of $35.6 million on the repurchase of preferred equity reported during the first quarter of 2009 combined with the acquisition transaction costs of $3.3 million related to 2010 acquisitions. These decreases were partially offset by reductions in depreciation expense, preferred equity cash distributions and net income allocable to non-controlling interests. Jessica Vernabe