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Table of Contents
SectionPage
Corporate Data:
Consolidated Financial Results:
Portfolio Data:
Industry Concentration and Top Ten Customers
Appendices and Definitions:

When used within this supplemental information package, the words “may,” “believes,” “anticipates,” “plans,” “expects,” “seeks,” “estimates,” “intends,” and similar expressions are intended to identify “forward-looking statements.” Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause the actual results and performance of the Company to be materially different from those expressed or implied in the forward-looking statements, including but not limited to: (i) the duration and severity of the COVID-19 pandemic and its impact on our business and our customers; (ii) changes in general economic and business conditions, including as a result of the economic fallout of the COVID-19 pandemic; (iii) potential regulatory actions to close our facilities or limit our ability to evict delinquent customers; (iv) decreases in rental rates or increases in vacancy rates/failure to renew or replace expiring leases; (v) tenant defaults; (vi) the effect of the recent credit and financial market conditions; (vii) our failure to maintain our status as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”); (viii) the economic health of our customers; (ix) the health of our officers and directors; (x) increases in operating costs; (xi) casualties to our properties not covered by insurance; (xii) the availability and cost of capital; (xiii) increases in interest rates and its effect on our stock price; (xiv) security breaches, including ransomware, or a failure of our networks, systems or technology which could adversely impact our operations or our business, customer and employee relationships or result in fraudulent payments; (xv) the impact of inflation; and (xvi) other factors discussed in the Company’s SEC reports, including quarterly reports on Form 10-Q, reports on Form 8-K, and annual reports on Form 10-K.
Second Quarter 2022 Supplemental Financial Reporting Package             2

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Investor Company Summary
Executive Management Team
Stephen W. WilsonPresident and Chief Executive Officer
Maria R. HawthorneInterim Chief Operating Officer
Adeel KhanChief Financial Officer and Corporate Secretary
Trenton GrovesSVP, Chief Accounting Officer
Board of Directors
Ronald L. Havner, Jr.Chairman of the Board
Stephen W. WilsonDirector, President and Chief Executive Officer
Maria R. HawthorneDirector, Interim Chief Operating Officer
Jennifer Holden DunbarDirector
M. Christian MitchellDirector
Irene H. OhDirector
Kristy M. PipesDirector
Gary E. PruittDirector
Robert S. RolloDirector
Joseph D. Russell, Jr.Director
Peter SchultzDirector
Investor Relations Information
Adeel Khan
T: 818.244.8080, Ext. 8975
akhan@psbusinessparks.com
Equity Research Coverage
FIRMANALYSTPHONEEMAIL
CitiManny Korchman212-816-1382emmanuel.korchman@citi.com
Green Street AdvisorsVince Tibone949-640-8780vtibone@greenstreetadvisors.com
JP MorganAnthony Paolone212-622-6682anthony.paolone@jpmorgan.com
KeyBancCraig Mailman917-368-2316cmailman@key.com
Wells FargoBlaine Heck443-263-6529blaine.heck@wellsfargo.com
PS Business Parks, Inc. is followed by the analysts listed above. Please note that any opinions, estimates or forecasts regarding PS Business Parks, Inc.'s performance made by these analysts are theirs alone and do not represent opinions, forecasts or predictions of PS Business Parks, Inc. or its management. PS Business Parks, Inc. does not by its reference above or distribution imply its endorsement of or concurrence with such information, conclusions or recommendations.



Second Quarter 2022 Supplemental Financial Reporting Package             3

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Company Overview
As Of June 30, 2022

Company Overview
Total # of Properties93
Total Square Feet26,626,000
Total Occupancy (Period End)95.3%
Same Park Occupancy (Period End)95.6%
Same Park YTD GAAP NOI growth4.7%
Same Park YTD Cash NOI growth4.2%
(S&P/Moody's) (2) (3)
BBB+, BBB-/Baa2 (under review)
Net Debt to Total Combined Market Capitalizationn/a
Net Debt and Preferred Equity to Total Combined Market Capitalization10.4%
Net Debt to Adjusted EBITDAre2.8x
Multifamily
Average rent per unit$2,132
Weighted average occupancy94.9%
Period end occupancy94.1%
Percent leased97.0%
Economic Occupancy92.1%
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(2) As a result of the announced Merger, our corporate credit rating by Standard and Poor’s (S&P) was downgraded to BBB+, while our preferred stock classes were downgraded to a rating of BBB-. S&P placed all their ratings on PSB, including our 'BBB+' issuer credit rating, on CreditWatch with negative implications. The CreditWatch placement reflects that S&P could lower their ratings upon closing of the transaction, based on the pro forma capital structure and their view of the acquirer's financial policy. S&P no longer views PSB as being strategic to Public Storage.
(3) Following the announcement of the Merger, Moody’s Investors Service (“Moody’s”) placed under review for downgrade the ratings of the Company and our Baa2 preferred stock rating and the Baa1 senior unsecured shelf rating of our main operating subsidiary, PS Business Parks, L.P. The review for downgrade reflects the likelihood that PSB’s credit profile will deteriorate under Blackstone’s ownership, with the potential for meaningfully higher leverage and secured debt levels that could result in a multi-notch downgrade of the REIT’s ratings, including crossing over to non-investment grade territory, upon transaction close.
Second Quarter 2022 Supplemental Financial Reporting Package             4

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Financial and Portfolio Highlights and Capitalization Data
(unaudited, in thousands except share and per share data and portfolio statistics)
Three Months Ended
June 30, 2022March 31, 2022December 31, 2021September 31, 2021June 30, 2021
Financial Results:
Rental income$110,910 $112,840 $110,844 $110,448 $109,364 
Net income$107,520 $101,145 $357,009 $78,463 $70,050 
Net Operating Income (NOI) (1)
$78,323 $76,740 $78,039 $76,093 $77,515 
Cash NOI (1)
$77,857 $76,083 $77,569 $76,056 $77,813 
Core FFO (1)
$65,011 $63,823 $63,485 $60,328 $61,816 
Core FFO per common stock - diluted (1)
$1.85 $1.82 $1.81 $1.72 $1.77 
EBITDAre$68,552 $67,601 $74,224 $72,599 $73,503 
Dividend declared per share of common stock$1.05 $1.05 $1.05 $1.05 $1.05 
Portfolio Statistics:
Total square footage at period end (2)
26,626,000 26,626,000 26,626,000 26,484,000 25,767,000 
Weighted average occupancy95.3 %95.8 %95.7 %94.9 %94.0 %
Period end Occupancy95.3 %95.7 %96.1 %95.7 %94.6 %
Rent Change - GAAP32.1 %23.8 %16.6 %15.6 %11.0 %
Rent Change - Cash17.9 %10.9 %6.3 %5.1 %3.3 %
Same Park Performance:
Same Park weighted average occupancy95.6 %96.2 %96.0 %95.1 %94.2 %
Same Park income per occupied square foot$16.58$17.06$16.53$16.56$16.36
Same Park GAAP NOI growth (1) (3)
4.7 %8.2 %9.0 %10.1 %11.5 %
Same Park Cash NOI growth (1) (3)
4.2 %9.1 %8.2 %13.0 %16.3 %
Capitalization:
Total shares and units issued and outstanding at period end (4)
34,936,854 34,932,798 34,895,162 34,851,508 34,846,819 
Total equity market capitalization$6,538,432 $5,871,505 $6,426,642 $5,462,625 $5,160,177 
Series W, X, Y and Z Preferred Stock (5)
$755,000 $755,000 $755,000 $944,750 $944,750 
Total consolidated debt$— $20,000 $32,000 $— $— 
Unrestricted cashn/a$(20,000)$(27,074)n/an/a
Total combined market capitalization (net debt plus equity)$7,293,432 $6,626,505 $7,186,568 $6,407,375 $6,104,927 
Ratios:
Net debt & preferred equity to total combined market capitalization10.4 %11.4 %10.6 %14.1 %13.8 %
Net debt to total combined market capitalization0.0 %0.0 %0.1 %n/an/a
Ratio of EBITDAre to fixed charges and preferred distributions (6)
7.0x6.9x6.9x5.9x6.0x
Net debt and preferred equity to EBITDAre (7)
2.8x2.8x2.6x3.1x2.8x
(1)For definition/discussion of non-GAAP financial measures and reconciliations to their nearest GAAP equivalents, see the definitions section & reconciliation section beginning on page 30 and page 9 of this report, respectively.
(2)Excludes assets sold.
(3)Represents the quarter over quarter percentage change in NOI and Cash NOI for the Same Park Portfolio.
(4)Total shares and units issued and outstanding at period end is comprised of common stock and common operating partnership units.
(5)Series W Preferred Stock redeemed in November 2021.
(6)For each period shown, ratio of total fixed charges to EBITDAre is calculated using the respective quarter’s annualized fixed charges divided by the respective quarter’s annualized EBITDAre.
(7)For each period shown, ratio of debt and preferred equity to EBITDAre is calculated using total net debt and preferred equity reported during the quarter divided by the respective quarter’s annualized EBITDAre.
Second Quarter 2022 Supplemental Financial Reporting Package             5

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Consolidated Balance Sheets
(unaudited, in thousands)
June 30, 2022December 31, 2021
ASSETS
Cash and cash equivalents$173,460 $27,074 (a)
Real estate facilities, at cost
Land849,942 852,073 
Buildings and improvements2,202,358 2,186,849 
3,052,300 3,038,922 
Accumulated depreciation(1,182,746)(1,141,727)
1,869,554 1,897,195 (b)
Properties held for sale, net— 66,914 
Land and building held for development, net112,952 76,575 
1,982,506 2,040,684 
Rent receivable1,571 1,621 
Deferred rent receivable37,525 37,581 (c)
Other assets10,995 16,262 
Total assets$2,206,057 $2,123,222 (d)
LIABILITIES AND EQUITY
Accrued and other liabilities$92,047 $97,151 (e)
Credit facility— 32,000 
Total liabilities92,047 129,151 
Equity
PS Business Parks, Inc.’s stockholders’ equity
Preferred stock755,000 755,000 
Common stock276 275 
Paid-in capital755,873 752,444 (f)
Accumulated earnings318,782 226,737 (g)
Total PS Business Parks, Inc.’s stockholders’ equity1,829,931 1,734,456 
Noncontrolling interests284,079 259,615 
Total equity2,114,010 1,994,071 
Total liabilities and equity$2,206,057 $2,123,222 
See Appendix A for additional detail related to the tickmarks shown in the table above.

Second Quarter 2022 Supplemental Financial Reporting Package             6

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Consolidated Statements of Operations, Quarterly Results
(unaudited and in thousands, except per share amounts)

 Three Months Ended
 June 30,
2022
March 31,
2022
 December 31,
2021
 September 30,
2021
 June 30,
2021
Rental income$110,910 $112,840 $110,844 $110,448 $109,364 
Expenses:
Cost of operations32,587 34,114 32,738 33,091 31,849 
Depreciation and amortization22,799 23,132 24,130 23,857 22,514 
General and administrative (1) (2)
11,092 11,324 4,728 5,148 4,799 
Total operating expenses66,478 68,570 61,596 62,096 59,162 
Interest and other income (3)
1,722 246 946 411 923 
Interest and other expense (4)
(476)(330)(3,943)(224)(268)
Gain on sale of real estate facilities61,842 56,959 310,758 29,924 19,193 
Net income107,520 101,145 357,009 78,463 70,050 
Allocation to noncontrolling interests(20,388)(19,049)(70,915)(13,850)(12,094)
Net income allocable to PS Business Parks, Inc.87,132 82,096 286,094 64,613 57,956 
Allocation to preferred stockholders(9,580)(9,580)(10,485)(12,046)(12,047)
Preferred securities redemption charge— — (6,434)— — 
Allocation to restricted stock unit holders(475)(523)(1,785)(350)(314)
Net income allocable to common stockholders$77,077 $71,993 $267,390 $52,217 $45,595 
Net income per share of common stock
Basic$2.79 $2.61 $9.70 $1.90 $1.66 
Diluted$2.78 $2.60 $9.66 $1.89 $1.65 
Weighted average common stock outstanding
Basic27,630 27,607 27,565 27,543 27,531 
Diluted27,722 27,691 27,671 27,635 27,632 
(1)General and administrative expense in Q2 22 includes the impact of Merger related costs of $6.1 million for professional fees and investor related services. ($3.0 million for Fairness opinion, $2.0 million for Definitive transaction agreement, $0.6 million for SEC filing fee and $0.5 million for certain other merger related costs).
(2)General and administrative expense in Q1 22 includes the impact of a one-time cash payment of $6.7 million for RSUs to the former CEO less a $0.6 million reversal of stock compensation expense.
(3)Interest and other income in Q2 2022 includes other income of $1.3 million related to proceeds from Overlake condemnation.
(4)Other expense includes $3.6 million related to state tax provision for the Three Months Ended December 31, 2021.

Second Quarter 2022 Supplemental Financial Reporting Package             7

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Consolidated Statements of Operations and EBITDAre
(unaudited and in thousands, except per share amounts)



Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Rental income$110,910 $109,364 (a)$223,750 $217,411 (a)
Expenses
Cost of operations 32,587 31,849 (b)66,701 65,067 (b)
Depreciation and amortization 22,799 22,514 45,931 45,499 
General and administrative 11,092 4,799 (c)22,416 9,181 (c)
Total operating expenses66,478 59,162 135,048 119,747 
Interest and other income 1,722 923 (d)1,968 1,179 (d)
Interest and other expense(476)(268)(e)(806)(479)(e)
Gain on sale of real estate facilities (1)
61,842 19,193 118,801 19,193 
Net income 107,520 70,050 208,665 117,557 
Allocation to noncontrolling interests(20,388)(12,094)(39,437)(19,505)
Net income allocable to PS Business Parks, Inc.87,132 57,956 169,228 98,052 
Allocation to preferred stockholders(9,580)(12,047)(19,160)(24,093)
Allocation to restricted stock unit holders(475)(314)(998)(478)
Net income allocable to common stockholders$77,077 $45,595 $149,070 $73,481 
Net income per share of common stock
Basic$2.79 $1.66 $5.40 $2.67 
Diluted$2.78 $1.65 $5.38 $2.66 
Weighted average common stock outstanding
Basic 27,630 27,531 27,618 27,513 
Diluted 27,722 27,632 27,707 27,611 
EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION FOR REAL ESTATE (EBITDAre) (1)
Three Months Ended June 30,Six Months Ended June 30,
20222021$ Change20222021$ Change
Net income$107,520 $70,050 $37,470 $208,665 $117,557 $91,108 
Net interest (income) expense75 132 (57)358 264 94 
Depreciation and amortization22,799 22,514 285 45,931 45,499 432 
Gain on sale of real estate facilities and development rights(61,842)(19,193)(42,649)(118,801)(19,193)(99,608)
EBITDAre$68,552 $73,503 $(4,951)$136,153 $144,127 $(7,974)
See Appendix B for additional detail related to the tickmarks shown in the table above.
(1) Refer to Page 30, Definitions and Non-GAAP Disclosures, for the definitions of EBITDAre and list of 2022 Assets sold and 2021 Assets sold.
Second Quarter 2022 Supplemental Financial Reporting Package             8

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Non-GAAP FFO, Core FFO and FAD Reconciliations
(unaudited and in thousands, except per share amounts)
 Three Months Ended
 June 30, 2022March 31, 2022 December 31, 2021September 30, 2021June 30, 2021
Net income allocable to common stockholders$77,077 $71,993 $267,390 $52,217 $45,595 
Adjustments
Gain on sale of real estate facilities(61,842)(56,959)(310,758)(29,924)(19,193)
Depreciation and amortization22,799 23,132 24,130 23,857 22,514 
Net income allocable to noncontrolling interests20,388 19,049 70,915 13,850 12,094 
Net income allocable to restricted stock unit holders475 523 1,785 350 314 
FFO allocated to joint venture partner(33)(23)(11)(22)(18)
FFO allocable to diluted common stock and units (1)
58,864 57,715 53,451 60,328 61,306 
Acquisition and merger costs6,147 — — — — 
CEO cash payment for RSUs net of reversal of stock compensation— 6,108 — — — 
Preferred securities redemption charge— — 6,434 — — 
Income tax expense— — 3,600 — — 
Maryland reincorporation costs— — — — 510 
Core FFO allocable to diluted common stock and units (1)
$65,011 $63,823 $63,485 $60,328 $61,816 
FAD
FFO allocable to diluted common stock and units (1)
$58,864 $57,715 $53,451 $60,328 $61,306 
Adjustments:
Recurring capital improvements(3,055)(1,556)(3,059)(3,760)(3,631)
Tenant improvements(5,837)(2,898)(3,175)(3,779)(3,849)
Capitalized lease commissions(1,620)(1,300)(3,274)(1,990)(1,430)
Total recurring capital expenditures for assets sold(139)(595)(579)(650)(542)
Total multifamily capital expenditures— — (6)— (7)
Cash paid for taxes in lieu of stock upon vesting of restricted stock units(387)(931)(260)(478)(5)
Preferred securities redemption charge— — 6,434 — — 
Non-cash rental income (2)
(1,015)(1,157)(857)(453)(183)
Non-cash stock compensation expense2,000 940 2,073 2,341 2,301 
FAD allocable to diluted common stock and units (1)
$48,811 $50,218 $50,748 $51,559 $53,960 
Non-recurring property renovations (1)
(609)(1,511)(1,686)(176)(432)
Investment in multifamily development(13,271)(12,455)(12,903)(13,516)(7,539)
Investment in industrial development(5,000)(3,796)(1,223)(165)(93)
Total non-recurring capital expenditures$(18,880)$(17,762)$(15,812)$(13,857)$(8,064)
Free cash available after non-recurring capital expenditures$29,931 $32,456 $34,936 $37,702 $45,896 
Total Distributions$(36,845)$(36,892)$(36,833)$(36,793)$(36,813)
Retained cash (1)
$(6,914)$(4,436)$(1,897)$909 $9,083 
Weighted average outstanding
Common stock27,630 27,607 27,565 27,543 27,531 
Operating partnership units7,305 7,305 7,305 7,305 7,305 
Restricted stock units39 45 46 33 32 
Common stock equivalents92 84 106 92 101 
Total diluted common stock and units35,066 35,041 35,022 34,973 34,969 
FFO per share$1.68 $1.65 $1.53 $1.72 $1.75 
Core FFO per share$1.85 $1.82 $1.81 $1.72 $1.77 
FAD distribution payout ratio (3) (4)
75.5 %73.5 %72.6 %71.4 %68.2 %
Second Quarter 2022 Supplemental Financial Reporting Package             9

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Non-GAAP FFO, Core FFO and FAD Reconciliations (cont'd)
(unaudited and in thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Net income allocable to common stockholders$77,077 $45,595 $149,070 $73,481 
Adjustments
Gain on sale of real estate facilities(61,842)(19,193)(118,801)(19,193)
Depreciation and amortization22,799 22,514 45,931 45,499 
Net income allocable to noncontrolling interests20,388 12,094 39,437 19,505 
Net income allocable to restricted stock unit holders475 314 998 478 
FFO allocated to joint venture partner(33)(18)(56)(45)
FFO allocable to diluted common stock and units (1)
58,864 61,306 116,579 119,725 
Acquisition and merger costs6,147 — 6,147 — 
CEO cash payment for RSUs net of reversal of stock compensation— — 6,108 — 
Maryland reincorporation costs— 510 — 510 
Core FFO allocable to diluted common stock and units (1)
$65,011 $61,816 $128,834 $120,235 
FAD
FFO allocable to diluted common stock and units (1)
$58,864 $61,306 $116,579 $119,725 
Adjustments:
Recurring capital improvements(3,055)(3,638)(4,611)(4,190)
Tenant improvements(5,837)(3,849)(8,735)(6,254)
Capitalized lease commissions(1,620)(1,430)(2,920)(3,160)
Total recurring capital expenditures for assets sold(139)(542)(734)(1,261)
Cash paid for taxes in lieu of stock upon vesting of restricted stock units(387)(5)(1,318)(3,202)
Non-cash rental income (2)
(1,015)(183)(2,172)(1,490)
Non-cash stock compensation expense2,000 2,301 2,940 4,081 
FAD allocable to diluted common stock and units (1)
$48,811 $53,960 $99,029 $104,249 
Non-recurring capital expenditures
Non-recurring property renovations (1)
(609)(432)(2,120)(843)
Investment in multifamily development(13,271)(7,539)(25,726)(17,024)
Investment in industrial development(5,000)(93)(8,796)(1,216)
Total non-recurring capital expenditures$(18,880)$(8,064)$(36,642)$(19,083)
Free cash available after non-recurring capital expenditures$29,931 $45,896 $62,387 $85,166 
Second Quarter 2022 Supplemental Financial Reporting Package             10

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Non-GAAP FFO, Core FFO and FAD Reconciliations (cont'd)
(unaudited and in thousands, except per share amounts)
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Distributions
Distributions to common stockholders $(29,013)$(28,918)$(58,023)$(57,790)
Distributions to noncontrolling interests - common units(7,670)(7,670)(15,341)(15,341)
Distributions to restricted stock unit holders(140)(202)(328)(366)
Distributions to noncontrolling interests - joint venture(22)(23)(45)(40)
Total Distributions(36,845)(36,813)(73,737)(73,537)
Retained cash (1)
(6,914)9,083 (11,350)11,629 
Weighted average outstanding
Common stock27,630 27,531 27,618 27,513 
Operating partnership units7,305 7,305 7,305 7,305 
Restricted stock units39 32 39 35 
Common stock equivalents92 101 89 98 
Total diluted common stock and units35,066 34,969 35,051 34,951 
FFO per share$1.68 $1.75 $3.33 $3.43 
Core FFO per share$1.85 $1.77 $3.68 $3.44 
FAD distribution payout ratio (3) (4)
75.5 %68.2 %74.5 %70.5 %
(1)
Refer to page 30, Definitions and Non-GAAP Disclosures, for the definition of FFO, Core FFO, FAD, Non-Recurring Property Renovations and Retained Cash.
(2)
Non-cash rental income includes amortization of deferred rent receivable (net of write-offs), in-place lease intangible, tenant improvement reimbursements, and lease incentives.
(3)
FAD distribution payout ratio is equal to total distributions to common stockholders, unit holders, restricted stock unit holders and our joint venture partner divided by FAD during the same reporting period.
(4)
For the three months ended December 31, 2021, the FAD distribution ratio excludes of $4.60 special dividend distributions to common stockholders, noncontrolling interest, and restricted stock unit holders.
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Second Quarter 2022 Supplemental Financial Reporting Package             11

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QTD 2022 NOI and Cash NOI
(unaudited, in thousands)
NET OPERATING INCOME
CASH NET OPERATING INCOME (2)
 Three Months Ended June 30, Three Months Ended June 30,
 20222021 % Change 20222021% Change
Rental income  
Same Park (1) (3) (4) (5)
$103,988 $98,010  6.1% $103,242 $97,698  5.7% 
Non-Same Park (1)
3,659 1,377  165.7% 3,369 1,390  142.4% 
Multifamily2,524 2,248  12.3% 2,524 2,248  12.3% 
Assets sold739 7,729  (90.4)% 760 7,845  (90.3)% 
Total rental income110,910 109,364  1.4% 109,895  109,181  0.7% 
Cost of operations (1) (6)
   
Same Park (1)
29,853 27,188  9.8% 29,335 26,750  9.7% 
Non-Same Park (1)
1,279 494  158.9% 1,253 490  155.7% 
Multifamily1,181 1,177  0.3% 1,181 1,177  0.3% 
Assets sold274 2,990  (90.8)% 269 2,951  (90.9)% 
Total cost of operations32,587 31,849  2.3% 32,038  31,368  2.1% 
Net operating income  
Same Park (1)
74,135 70,822  4.7% 73,907 70,948  4.2% 
Non-Same Park (1)
2,380 883  169.5% 2,116 900  135.1% 
Multifamily1,343 1,071  25.4% 1,343 1,071  25.4% 
Assets sold465 4,739  (90.2)% 491 4,894  (90.0)% 
Total net operating income$78,323 $77,515  1.0% $77,857  $77,813  0.1% 
(1)Refer to page 30, Definition and Non-GAAP Disclosures, for the definitions of Same Park, Non-Same Park, and Cash Rental Income. See Appendix C for Same Park Cost of Operations table.
(2)Cash NOI excludes $0.5 million stock based compensation for the three months ended June 30, 2022 and 2021, respectively.
(3)Same Park rental income and Cash Rental Income include lease buyout income of $0.1 million and $0.2 million for the three months ended June 30, 2022 and 2021, respectively.
(4)Same Park rental income is presented net of (a) accounts receivable write-offs (recoveries) and (b) deferred rent receivable write-offs.
(5)Same Park Cash Rental Income is presented net of (a) accounts receivable write-offs (recoveries) and (b) rent deferrals and abatements.
(6)Refer to Appendix B for a reconciliation of Cash Rental Income to rental income and Cost of Operations to Cost of Operations under Cash NOI as reported on our GAAP statements of income.


Second Quarter 2022 Supplemental Financial Reporting Package             12

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YTD 2022 NOI and Cash NOI
(unaudited, in thousands)
NET OPERATING INCOME
CASH NET OPERATING INCOME (2)
 Six Months Ended June 30, Six Months Ended June 30,
 20222021 % Change 20222021% Change
Rental income  
Same Park (1) (3) (4) (5)
$207,390 $194,167  6.8% $205,749 $192,518  6.9% 
Non-Same Park (1)
7,007 2,623  167.1% 6,444 2,659  142.3% 
Multifamily4,893 4,575  7.0% 4,893 4,575  7.0% 
Assets sold4,460 16,046  (72.2)% 4,492 16,169  (72.2)% 
Total rental income223,750 217,411  2.9% 221,578  215,921  2.6% 
Cost of operations (1) (6)
   
Same Park (1)
59,950 55,594  7.8% 58,946 54,742  7.7% 
Non-Same Park (1)
2,339 916  155.3% 2,288 907  152.3% 
Multifamily2,405 2,244  7.2% 2,405 2,244  7.2% 
Assets sold2,007 6,313  (68.2)% 1,977 6,237  (68.3)% 
Total cost of operations66,701 65,067  2.5% 65,616  64,130  2.3% 
Net operating income  
Same Park (1)
147,440 138,573  6.4% 146,803 137,776  6.6% 
Non-Same Park (1)
4,668 1,707  173.5% 4,156 1,752  137.2% 
Multifamily2,488 2,331  6.7% 2,488 2,331  6.7% 
Assets sold2,453 9,733  (74.8)% 2,515 9,932  (74.7)% 
Total net operating income$157,049 $152,344  3.1% $155,962  $151,791  2.7% 
(1)Refer to page 30, Definition and Non-GAAP Disclosures, for the definitions of Same Park, Non-Same Park, and Cash Rental Income. See Appendix C for Same Park Cost of Operations table.
(2)Cash NOI excludes $1.1 million and $0.9 million stock based compensation for the six months ended June 30, 2022 and 2021, respectively.
(3)Same Park rental income and Cash Rental Income include lease buyout income of 0.3 million and $0.5 million for the six months ended June 30, 2022 and 2021, respectively.
(4)Same Park rental income is presented net of (a) accounts receivable write-offs (recoveries) and (b) deferred rent receivable write-offs.
(5)Same Park Cash Rental Income is presented net of (a) accounts receivable write-offs (recoveries) and (b) rent deferrals and abatements.
(6)Refer to Appendix B for a reconciliation of Cash Rental Income to rental income and Cost of Operations to Cost of Operations under Cash NOI as reported on our GAAP statements of income.


Second Quarter 2022 Supplemental Financial Reporting Package             13

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Same Park Cash NOI by Region and Type (1)
(in thousands)
 Three Months Ended
 June 30, 2022 June 30, 2021Period Change by Product TypeTotal
  Industrial   Flex   Office   Total   Industrial   Flex   Office   Total  Industrial  Flex  Office  % Change
Cash NOI (1)
Northern California$19,957 $1,895 $1,444 $23,296 $18,657 $1,761 $1,937 $22,355 7.0%7.6%(25.5)%4.2%
Southern California9,481 2,428 127 12,036 8,744 2,704 127 11,575 8.4%(10.2)%0.0%4.0%
Dallas2,285 1,308 n/a3,593 2,050 1,134 n/a3,184 11.5%15.3%n/a12.8%
Austin1,608 4,037 n/a5,645 1,491 4,020 n/a5,511 7.8%0.4%n/a2.4%
Northern Virginia4,027 3,483 4,484 11,994 3,541 3,979 4,906 12,426 13.7%(12.5)%(8.6)%(3.5)%
South Florida9,652 450 13 10,115 8,489 334 22 8,845 13.7%34.7%(40.9)%14.4%
Seattle2,547 1,206 113 3,866 2,406 1,328 76 3,810 5.9%(9.2)%48.7%1.5%
Suburban Maryland832 n/a2,530 3,362 748 n/a2,494 3,242 11.2%n/a1.4%3.7%
Total$50,389 $14,807 $8,711 $73,907 $46,126 $15,260 $9,562 $70,948 9.2%(3.0)%(8.9)%4.2%
Percentage by Product Type68.2 %20.0 %11.8 %100.0 %65.0 %21.5 %13.5 %100.0 %

 Six Months Ended
 June 30, 2022June 30, 2021Period Change by Product TypeTotal
 Industrial   Flex   Office   Total   Industrial   Flex   Office   Total IndustrialFlexOffice % Change
Cash NOI (1)
Northern California$40,153 $3,796 $2,984 $46,933 $36,105 $3,471 $3,800 $43,376 11.2%9.4%(21.5)%8.2%
Southern California18,701 4,832 246 23,779 16,493 5,076 244 21,813 13.4%(4.8)%0.8%9.0%
Dallas4,563 2,685 n/a7,248 4,013 2,296 n/a6,309 13.7%16.9%n/a14.9%
Austin3,101 7,872 n/a10,973 2,897 8,032 n/a10,929 7.0%(2.0)%n/a0.4%
Northern Virginia7,798 7,045 9,143 23,986 6,957 7,610 9,519 24,086 12.1%(7.4)%(3.9)%(0.4)%
South Florida18,849 894 20 19,763 16,722 681 44 17,447 12.7%31.3%(54.5)%13.3%
Seattle4,982 2,489 187 7,658 4,625 2,672 141 7,438 7.7%(6.8)%32.6%3.0%
Suburban Maryland1,662 n/a4,801 6,463 1,536 n/a4,842 6,378 8.2%n/a(0.8)%1.3%
Total$99,809 $29,613 $17,381 $146,803 $89,348 $29,838 $18,590 $137,776 11.7%(0.8)%(6.5)%6.6%
Percentage by Product Type68.0 %20.2 %11.8 %100.0 %64.8 %21.7 %13.5 %100.0 %

(1)Refer to page 30, Definitions and Non-GAAP Disclosures, for the definitions of Same Park and Cash NOI.
Second Quarter 2022 Supplemental Financial Reporting Package             14

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Capitalization Summary
(unaudited and in thousands, except share and per share data)
 
As of June 30, 2022
 As of December 31, 2021
 Total  % Total Market Capitalization  Wtd Avg Rate  Total % Total Market Capitalization Wtd Avg Rate
Common Stock:
Common stock, $0.01 par value, 100,000,000 shares authorized, 27,631,499 and 27,589,807 shares issued and outstanding at June 30, 2022 and December 31, 2021, respectively. $5,171,235 70.9%$5,081,215 70.7%
Common operating partnership units (7,305,355 units outstanding as of June 30, 2022 and December 31, 2021, respectively.) (1)
1,367,197 18.7%1,345,427 18.7%
Total common equity and operating partnership units (1)
$6,538,432 89.6%$6,426,642 89.4%
Preferred Equity:
5.250% Series X preferred stock (9,200,000 depository shares outstanding) callable 9/21/22230,000 3.2%230,000 3.2%
5.200% Series Y preferred stock (8,000,000 depository shares outstanding) callable 12/7/22200,000 2.7%200,000 2.8%
4.875% Series Z preferred stock (13,000,000 depository shares outstanding) callable 11/4/24325,000 4.5%325,000 4.5%
Total preferred equity$755,000 10.4%5.08%$755,000 10.5%5.08%
Unsecured Debt:
Credit facility borrowing ($400.0 million at LIBOR + 0.70%)$— 0.0%0.00%32,0000.4%0.80%
Unrestricted cash (2)
— 0.0%(27,074)(0.4)%
Net debt$— 0.0%$4,9260.1%
Total net debt and preferred equity$755,000 10.4%5.08%$759,92610.6%4.90%
Total implied market capitalization$7,293,432 100.0%$7,186,568100.0%
Interest expense and related expenses (annualized) (3) (4)
$1,080 $1,080 
Preferred distributions (annualized) (5)
38,320 38,320 
Total fixed charges and preferred distributions (annualized)$39,400 $39,400 
Ratio of EBITDAre to fixed charges and preferred distributions (6)
7.0x6.9x
Ratio of net debt and preferred equity to EBITDAre (7)
2.8x2.6x
(1)Total common equity is calculated as the total number of common stock and operating partnership units outstanding multiplied by the Company’s closing share price at the end of each respective period. Closing share prices on June 30, 2022 and December 31, 2021 were $187.15 and $184.17, respectively.
(2)Unrestricted cash balance is $173.5 million as of June 30, 2022..
(3)Interest expense and related expenses includes facility fees associated with our unsecured credit facility.
(4)We annualized Interest expense and related charges for the three months ended June 30, 2022, in the amount of $270,000.
(5)We annualized preferred distributions for the three months ended June 30, 2022, in the amount of $9.6 million.
(6)For each period shown, ratio of total fixed charges to EBITDAre is calculated using the respective quarter’s annualized fixed charges divided by the respective quarter’s annualized EBITDAre.
(7)For each period shown, ratio of debt and preferred equity to EBITDAre is calculated using total net debt and preferred equity reported during the quarter divided by the respective quarter’s annualized EBITDAre.
Second Quarter 2022 Supplemental Financial Reporting Package             15

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Analysis of Capital Expenditures
(unaudited and in thousands, except per square foot data)
 Six Months Ended June 30,
 20222021
Commercial Recurring Capital Expenditures (1)
 
 Same Park 
 Capital improvements$4,338 $4,152 
 Tenant improvements6,754 6,093 
 Lease commissions2,509 3,095 
Total Same Park Recurring Capital Expenditures$13,601 $13,340 
Same Park Recurring Capital Expenditures as a percentage of Cash NOI9.3%9.7%
 Non-Same Park
 Capital improvements273 31 
 Tenant improvements1,981 161 
 Lease commissions411 64 
Total Non-Same Park Recurring Capital Expenditures2,665 256 
Non-Same Park Recurring Capital Expenditures as a percentage of Cash NOI64.1%14.6%
Total Recurring Capital Expenditures16,266 13,596 
Total Recurring Capital Expenditures as a percentage of Cash NOI10.8%9.7%
Assets sold Recurring Capital Expenditures734 1,261 
Total commercial Recurring Capital Expenditures17,000 14,857 
Total Commercial Recurring Capital Expenditures as a percentage of Cash NOI11.1%9.9%
 Non-recurring Property Renovations (1)
2,120 843 
 Multifamily capital expenditures— 
Total capital expenditures$19,120 $15,707 
Development costs (2)
$34,522 $18,240 
(1)Refer to page 30, Definitions and Non-GAAP Disclosures, for the definitions of Recurring Capital Expenditures and Non-recurring Property Renovations.
(2)Development costs for the six months ended June 30, 2022 comprises Brentford ($23.0M), 212 Industrial Park ($7.0M), and Boca ($1.8M). See Developments page. We also have additional entitlement related costs for certain projects which comprise Colma Creek ($1.7M), Charlton ($0.8M), Overlake ($0.1M), and The Mile ($0.1)M.
Second Quarter 2022 Supplemental Financial Reportin