Financial Analysis: Parkway Properties, Inc

Assignment #1

Financial Analysis: Parkway Properties, Inc.

T’Juan Rucker

Dr. Karaffa

Financial Management FIN534

December 11, 2011

The author chose to conduct research on Parkway Properties, Inc. The contents of this paper will consist of detailed information regarding Parkway’s background and company overview, provides an evaluation of the company’s vulnerability to financial threats, financial performance, and a stock price analysis. The appropriate reference material will be included in the appendix section.

Parkway Properties, Inc., a member of the S&P Small Cap 600 Index, is a self-administered real estate investment trust specializing in the operation, acquisition, ownership, management, and leasing of office properties. The Company is geographically focused on the Southeastern and Southwestern United States and Chicago. Parkway owns or has an interest in 69 office properties located in 11 states with an aggregate of approximately 14.1 million square feet of leasable space. Included in the portfolio are 26 properties totaling 6.6 million square feet that are owned jointly with other investors, representing 45.5% of the portfolio (Parkway, 2011). The Company typically invests in top metropolitan statistical areas with high population and job growth areas in core markets located in the Southeastern and Southwestern United States. Parkway’s customer base is comprised of customers from diverse industry sectors. By transforming to an operator‐owner of real estate, Parkway is able to grow its business through smaller ownership interests by jointly investing with venture and discretionary fund partners. This transformation has enabled Parkway Properties to strengthen the steady financial returns from properties with a fast growing stream of recurring fee income and to reduce risk of fee simple ownership. The Company also offers fee-based real estate services through its wholly owned subsidiary, Parkway Realty Services, to its owned properties and to...