PS Business Parks Inc.’s PSB first-quarter 2016 funds from operations (“FFO”) per share came at $1.26, beating the Zacks Consensus Estimate by 2 cents and improving from $1.13 in the prior-year quarter. We expect the outperformance to lead to stock movement.Results reflected a rise in net operating income (NOI) together with savings from preferred distributions associated with the redemption of preferred equity, but partly marred by the impact of assets sold.Total operating revenues came in at around $96.0 million, reflecting 3.8% growth from the prior-year period.Quarter in DetailSame Park rental income climbed 4.8% year over year, mainly attributable to improving occupancy and rental rates; while Same Park operating expenses increased 2.1%. As a result, Same Park NOI rose 6.2% year over year. On the other hand, non-Same Park NOI jumped 90.5% year over year led by an increase in occupancy.Annualized Same Park realized rent per square foot rose 2.7% year over year to $14.66. Same Park weighted average occupancy in the quarter was 94.1%, up 200 basis points (bps) year over year; while Non-Same Park weighted average occupancy grew to 95.0% from 69.2% a year ago.LiquidityPS Business Parks exited first-quarter 2016 with cash and cash equivalents of $195.3 million, higher than the prior-year end tally of $188.9 million. At the end of the first quarter, the company had full capacity available under its $250-million unsecured credit facility.Dividend UpdateConcurrent with its first-quarter earnings release, the company announced a regular quarterly dividend of 75 cents per share. The dividend is payable on Jun 30 to shareholders of record on Jun 15.ConclusionPS Business Parks, with presence in diversified markets, portfolio-repositioning strategies and a decent balance sheet holding ample liquidity, is poised for growth in the long term. However, intense competition from developers, owners and operators, and anticipation of rise in interest rates remain as key concerns.PS Business Parks currently carries a Zacks Rank #3 (Hold). Investors interested in the REIT industry may consider stocks like CubeSmart CUBE, Public Storage PSA and SL Green Realty Corp. SLG. All these stocks carry a Zacks Rank #2 (Buy).Note: FFO, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PUBLIC STORAGE (PSA): Free Stock Analysis Report PS BUSINESS PKS (PSB): Free Stock Analysis Report SL GREEN REALTY (SLG): Free Stock Analysis Report CUBESMART (CUBE): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research