PS Business Parks Beats Forecasts

PS Business Parks narrowly beat Wall Street expectations for funds from operations in the third quarter. The Glendale real estate investment trust, which specializes in commercial properties, reported funds from operations of $41.4 million ($1.20 a share) for the quarter ending Sept. 30, compared to $41.2 million ($1.20) for the same period a year ago. Analysts on average expected funds from operations of $1.19. Revenue dropped 2.4 percent year over year to $93.4 million for the quarter. Funds from operation, which takes net income and adds back items such as depreciation and amortization, is a key metric in the REIT industry. The company reported net income of $22.5 million (83 cents a share), an increase of nearly 100 percent from $11.3 million (42 cents a share) for third quarter last year. Concurrent with its third-quarter earnings release, the company announced a regular quarterly dividend of 60 cents per share, payable on Dec. 30 to shareholders of record on Dec. 15. The company announced results after market close on Tuesday. Shares closed Wednesday up $1.07 or 1.2 percent to $86.37 on the New York Stock Exchange.