PS Business Parks CEO Discusses Q3 2010 Results – Earnings Call Transcript
All forward-looking statements speak only as of the date of this conference call. PS Business Parks undertakes no obligation to update or revise any forward-looking statements whether as a result of new information, future events, or otherwise. For additional information about risks and uncertainties that could adversely affects PS Business Parks' forward-looking statements, please refer to the reports filed by the company with the Securities and Exchange Commission including our annual report on Form 10-K and subsequent reports on Form 10-Q and Form 8-K. We will also provide certain non-GAAP financial measures. Reconciliation to GAAP of these non-GAAP financial measures is included in our press release which can be found on our website at www.psbusinessparks.com.
Now I will turn the call over to Joe.
Thank you, Ed. Good morning and thank you for joining us. I am going to briefly review third quarter results, touch base on the investment arena and close by discussing our recent capital raising activity. J.P. will go into more detail on specific operational results and then Ed will conclude by discussing our financial metrics.PSB's third quarter operational results were in close range to our performance over the last few quarters. Same Park occupancy trended down slight toll 91.3% but was up 190 basis points from a year ago. This is the fourth consecutive quarter where we have maintained occupancy above 91%. Leasing volume was up slightly as we closed approximately $1.5 million square feet in deals with a total of 444 leases signed. The average lease size was approximately 3400 square feet, again similar with previous metrics. New leases are still more onerous to close where users shop markets more aggressively and look for additional concessions to justify a move. Without that pressure, renewals can generate less onerous rent roll-downs and thus we attempt to retain every customer we can. This quarter retention was up slightly to 58%, which is also our run rate for the full year.
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