PS Business Parks, Inc. (NYSE:PSB) announced today that it is calling for redemption on June 15, 2012 all outstanding depositary shares representing interests in its 7.000% Cumulative Preferred Stock, Series H (NYSE:PSBPrH) and in its 6.875% Cumulative Preferred Stock, Series I (NYSE:PSBPrI) each at $25 per share plus accrued dividends from April 1, 2012 through the date of redemption. The aggregate redemption amount, before payment of accrued dividends, to be paid to all holders of the depositary shares is $227.1 million. The redemptions will be funded with proceeds from the Company’s recent $350.0 million issuance of its 6.00% Cumulative Preferred Stock, Series T (NYSE:PSBPrT). In connection with the redemptions, the Company will report a reduction of net income allocable to common shareholders and unit holders during the second quarter of 2012 of $8.1 million equal to the Series H and I original issuance costs.
PS Business Parks, Inc., a member of the S&P SmallCap 600, is a self-advised and self-managed real estate investment trust (“REIT”) that acquires, develops, owns and operates commercial properties, primarily multi-tenant flex, office and industrial space. The Company defines “flex” space as buildings that are configured with a combination of office and warehouse space and can be designed to fit a number of uses (including office, assembly, showroom, laboratory, light manufacturing and warehouse space). As of March 31, 2012, the Company wholly owned 27.2 million rentable square feet with approximately 4,400 customers located in eight states, concentrated in California (11.1 million sq. ft.), Virginia (4.2 million sq. ft.), Florida (3.7 million sq. ft.), Texas (3.3 million sq. ft.), Maryland (2.4 million sq. ft.), Oregon (1.3 million sq. ft.), Arizona (0.7 million sq. ft.) and Washington (0.5 million sq. ft.).