Company Quick10K Filing
Quick10K
PS Business Parks
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$154.87 27 $4,250
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-07-23 Earnings, Exhibits
8-K 2019-07-17 Officers, Exhibits
8-K 2019-04-30 Earnings, Exhibits
8-K 2019-04-25 Shareholder Vote
8-K 2019-02-20 Earnings, Officers, Exhibits
8-K 2018-10-23 Earnings, Exhibits
8-K 2018-09-07 Officers, Regulation FD, Exhibits
8-K 2018-07-24 Earnings, Exhibits
8-K 2018-04-24 Earnings, Shareholder Vote, Exhibits
8-K 2018-02-20 Earnings, Exhibits
MO Altria Group 97,270
ELAN Elanco Animal Healthrporated 12,050
ALV Autoliv 6,450
MTG MGIC Investment 5,000
PAGS PagSeguro 4,440
ORIT Oritani Financial 767
SITO Sito Mobile 52
ASM Avino Silver & Gold Mines 30
BURG Chanticleer Holdings 6
RGFR Rangeford Resources 0
PSB 2019-06-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 c368-20190630xex31_1.htm
EX-31.2 c368-20190630xex31_2.htm
EX-32.1 c368-20190630xex32_1.htm

PS Business Parks Earnings 2019-06-30

PSB 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

c368-20190630x10q
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Table of Contents

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

S

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2019

or

£

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to

Commission File Number 1-10709

PS BUSINESS PARKS, INC.

(Exact name of registrant as specified in its charter)

California

95-4300881

(State or Other Jurisdiction

(I.R.S. Employer

of Incorporation)

Identification Number)

701 Western Avenue, Glendale, California 91201-2349

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (818) 244-8080

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Ticker Symbol

Name of Each Exchange on Which Registered

Common Stock, $0.01 par value per share

PSB

New York Stock Exchange

Depositary Shares Each Representing 1/1,000 of a Share of

5.750% Cumulative Preferred Stock, Series U, $0.01 par value per share

PSBPrU

New York Stock Exchange

Depositary Shares Each Representing 1/1,000 of a Share of

5.700% Cumulative Preferred Stock, Series V, $0.01 par value per share

PSBPrV

New York Stock Exchange

Depositary Shares Each Representing 1/1,000 of a Share of

5.200% Cumulative Preferred Stock, Series W, $0.01 par value per share

PSBPrW

New York Stock Exchange

Depositary Shares Each Representing 1/1,000 of a Share of

5.250% Cumulative Preferred Stock, Series X, $0.01 par value per share

PSBPrX

New York Stock Exchange

Depositary Shares Each Representing 1/1,000 of a Share of

5.200% Cumulative Preferred Stock, Series Y, $0.01 par value per share

PSBPrY

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.

Yes S No £

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes S No £

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

S

Accelerated filer

£

Non-accelerated filer

£

Smaller reporting company

£

Emerging growth company

£

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. £

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes £ No S

As of July 22, 2019, the number of shares of the registrant’s common stock, $0.01 par value per share, outstanding was 27,430,764.


Table of Contents

PS BUSINESS PARKS, INC.

INDEX

Page

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated balance sheets as of June 30, 2019 (unaudited) and December 31, 2018

3

Consolidated statements of income (unaudited) for the three and six months ended June 30, 2019 and 2018

4

Consolidated statement of equity (unaudited) for the three and six months ended June 30, 2019 and 2018

5

Consolidated statements of cash flows (unaudited) for the six months ended June 30, 2019 and 2018

7

Notes to consolidated financial statements (unaudited)

8

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

22

Item 3. Quantitative and Qualitative Disclosures About Market Risk

38

Item 4. Controls and Procedures

38

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

38

Item 1A. Risk Factors

39

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

39

Item 6. Exhibits

40


Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

PS BUSINESS PARKS, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

June 30,

December 31,

2019

2018

(Unaudited)

ASSETS

Cash and cash equivalents

$

42,046 

$

37,379 

Real estate facilities, at cost

Land

772,399 

762,731 

Buildings and improvements

2,171,281 

2,157,407 

2,943,680 

2,920,138 

Accumulated depreciation

(1,135,107)

(1,097,748)

1,808,573 

1,822,390 

Properties held for sale, net

124,680 

128,093 

Land and building held for development

31,841 

30,848 

1,965,094 

1,981,331 

Rent receivable, net

2,308 

1,403 

Deferred rent receivable, net

34,572 

33,308 

Other assets

13,524 

15,173 

Total assets

$

2,057,544 

$

2,068,594 

LIABILITIES AND EQUITY

Accrued and other liabilities

$

80,367 

$

85,141 

Total liabilities

80,367 

85,141 

Commitments and contingencies

 

 

Equity

PS Business Parks, Inc.’s shareholders’ equity

Preferred stock, $0.01 par value, 50,000,000 shares authorized,

38,390 shares issued and outstanding at

June 30, 2019 and December 31, 2018

959,750 

959,750 

Common stock, $0.01 par value, 100,000,000 shares authorized,

27,429,756 and 27,362,101 shares issued and outstanding at

June 30, 2019 and December 31, 2018, respectively

274 

274 

Paid-in capital

733,777 

736,131 

Accumulated earnings

67,049 

69,207 

Total PS Business Parks, Inc.’s shareholders’ equity

1,760,850 

1,765,362 

Noncontrolling interests

216,327 

218,091 

Total equity

1,977,177 

1,983,453 

Total liabilities and equity

$

2,057,544 

$

2,068,594 

See accompanying notes.

3


Table of Contents

PS BUSINESS PARKS, INC.

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except per share data)

(Unaudited)

For The Three Months

For The Six Months

Ended June 30,

Ended June 30,

2019

2018

2019

2018

Rental income

$

107,782 

$

101,824 

$

215,607 

$

205,583 

Expenses

Cost of operations

31,460 

30,796 

65,053 

63,252 

Depreciation and amortization

24,768 

24,416 

49,643 

48,298 

General and administrative

2,827 

2,828 

6,060 

5,678 

Total operating expenses

59,055 

58,040 

120,756 

117,228 

Interest and other income

764 

294 

1,382 

578 

Interest and other expense

(118)

(167)

(285)

(332)

Gain on sale of real estate facilities

58,448 

85,283 

Net income

49,373 

102,359 

95,948 

173,884 

Allocation to noncontrolling interests

(7,623)

(18,400)

(14,650)

(30,300)

Net income allocable to PS Business Parks, Inc.

41,750 

83,959 

81,298 

143,584 

Allocation to preferred shareholders

(12,959)

(12,959)

(25,918)

(25,962)

Allocation to restricted stock unit holders

(212)

(779)

(480)

(1,353)

Net income allocable to common shareholders

$

28,579 

$

70,221 

$

54,900 

$

116,269 

Net income per common share

Basic

$

1.04 

$

2.57 

$

2.00 

$

4.26 

Diluted

$

1.04 

$

2.56 

$

2.00 

$

4.24 

Weighted average common shares outstanding

Basic

27,426 

27,322 

27,400 

27,294 

Diluted

27,532 

27,423 

27,505 

27,395 

See accompanying notes.

4


Table of Contents

PS BUSINESS PARKS, INC.

CONSOLIDATED STATEMENT OF EQUITY

(Amounts in thousands, except share data)

(Unaudited)

Total PS

Business Parks,

For the three months ended

Preferred Stock

Common Stock

Paid-in

Accumulated

Inc.’s Shareholders’

Noncontrolling

Total

June 30, 2019

Shares

Amount

Shares

Amount

Capital

Earnings (Deficit)

Equity

Interests

Equity

Balances at March 31, 2019

38,390

$

959,750

27,417,909

$

274

$

732,955

$

67,059

$

1,760,038

$

216,237

$

1,976,275

Issuance of common stock in

connection with stock-based

compensation

11,847

304

304

304

Stock compensation, net

706

706

706

Cash paid for taxes in lieu of

shares upon vesting of

restricted stock units

(6)

(6)

(6)

Net income

41,750

41,750

7,623

49,373

Distributions

Preferred stock (Note 8)

(12,959)

(12,959)

(12,959)

Common stock ($1.05 per share)

(28,801)

(28,801)

(28,801)

Noncontrolling interests—

Common Units

(7,670)

(7,670)

Joint Venture

(45)

(45)

Adjustment to noncontrolling interests—

common units in the OP

(182)

(182)

182

Balances at June 30, 2019

38,390

$

959,750

27,429,756

$

274

$

733,777

$

67,049

$

1,760,850

$

216,327

$

1,977,177

For the three months ended

June 30, 2018

Balances at March 31, 2018

38,390

$

959,750

27,316,698

$

272

$

732,574

$

21,673

$

1,714,269

$

205,378

$

1,919,647

Issuance of common stock in

connection with stock-based

compensation

15,136

975

975

975

Stock compensation, net

431

431

431

Net income

83,959

83,959

18,400

102,359

Distributions

Preferred stock (Note 8)

(12,959)

(12,959)

(12,959)

Common stock ($0.85 per share)

(23,225)

(23,225)

(23,225)

Noncontrolling interests—

common units

(6,209)

(6,209)

Adjustment to noncontrolling interests—

common units in the OP

(363)

(363)

363

Balances at June 30, 2018

38,390

$

959,750

27,331,834

$

272

$

733,617

$

69,448

$

1,763,087

$

217,932

$

1,981,019


See accompanying notes.

5


Table of Contents

PS BUSINESS PARKS, INC.

CONSOLIDATED STATEMENT OF EQUITY

(Amounts in thousands, except share data)

(Unaudited)