I industrial I flex I office Ipsbusinessparks.com

COMPANY UPDATE

701 WESTERN AVENUE I GLENDALE, CA 91201 I 818.244.8080

JUNE 2019

2 Company Update

3. Message from our CEO

4. Executive Team

5. Company Overview

7. Investment Strategy

10. Diverse Customer Base

14. Same Park NOI

16. Key Performance Metrics

17. Development Update

FEATURES

19. Social Responsibility

3Company Update

Current operating conditions in nearly all our markets are excellent and Washington D.C. which has lagged in prior quarters is improving. We feel that, on average, we are likely to continue to achieve improved rental rates on new and renewed leases for our 2019 expirations. We remain focused on making multi-tenant industrial park acquisitions in our existing markets.Pricing remains high and our volume will be dependent on the quality and pricing of opportunities. In the month of April we closed on the acquisition

“Market conditions for industrial properties remains among the best we have seen. Our balance sheet is well positioned for growth and investor demand for our type

of real estate is intense.”

I am happy to report that 2019 is off to a great start! In Q1 we reported Same Park Cash NOI growth of 4.9% along with 9.2% rent growth on 1.6 million square feet of executed leases. These metrics combined with Same Park occupancy of 94.5% demonstrates the continued strength of our infill markets combined with our small customer strategy.

A MESSAGE FROM OUR CEOMARIA HAWTHORNE

of Walnut Industrial Park, a park located in Los Angeles very close to some of our most established and successful assets. Walnut has long been a direct competi-tor, and will be great compliment to our existing portfolio with in-place rents approximately 20% less than what we are getting on our comparable proper-ties. As we continue to seek out addi-tional accretive growth opportunities, you should expect to see our dedicat-ed in-house leasing and property man-agement teams continue to maximize value from our portfolio by driving rent-growth, keeping transaction costs low, and optimizing property operations.

Maria has served as CEO since July 2016, and at which time she was also elected as a member of our Board. Maria has over 34 years of experi-ence with the Company and its affiliates and has held a va-riety of roles during that time, serving most recently as Chief Administrative Officer.

Jeff HedgesExecutive Vice President & CFO

Maria HawthornePresident & CEO

John PetersenExecutive Vice President & COO

Trenton GrovesSenior Vice President & CAO

Coby HolleyVice President, Real Estate

Trenton joined the Company in 2004 and has served as CAO since September 2018. Prior to that, he was Vice Presi-dent, Finance, and Corporate Controller. Before joining PSB, Trenton was a manager at both, Ernst & Young, LLP and Arthur Andersen, LLP.

John has served as COO since he joined the Company in 2004. Prior to joining PSB, John was Senior Vice Presi-dent, for Equity Office Proper-ties from 2001 to 2004, and Senior Vice President with Spieker Properties from 1995 to 2001.

Jeff joined the Company as CFO in September 2018. Prior to joining PSB, Jeff was Senior Vice President for Invitation Homes from 2015 to 2018, and prior to that he was a Senior Manager at Ernst & Young, LLP from 2006 to 2015.

Coby joined the Company in 2003 and he has served as Vice President, Real Estate since 2014, overseeing the Company’s acquisitions, dis-positions and development. Prior to joining PSB, Coby was a Senior Vice President at CBRE.

Stuart has been with the Company for 18 years and has served as Vice President, Southern California since De-cember 2016, and prior to that was Regional Manager of Op-erations. Before joining PSB, Stuart was with Transwestern and Fujita USA.

Chris AuthVice President, Washington Metro

Stuart HutchisonVice President, Southern California

David VicarsVice President, Southeast

Rich GuertinVice President, Florida

David joined the Company in 2004 and has served as Vice President, Southeast (Texas and Florida). Prior to joining PSB, David spent over 25 years working in a leadership capac-ity at Compass Management, Leasing/Equitable Real Estate and The Horne Company.

Chris has been with the Com-pany for 13 years, serving in a variety of roles. Since 2014, he has led the Washington Metro Division as its Divisional Vice President. Prior to joining PSB, he worked for Cumming Properties, a private owner/developer in the Greater Boston area.

Rich has been with PSB for 8 years and was recently promoted to Senior Regional Vice Presi-dent. Rich has 30+ years of ex-perience and prior to joining PSB, he worked for Paragon, Inc. and Oakwood Corporate Housing.

Dick ScottVice President, Northern CaliforniaDick has served as Vice Presi-dent, Northern California since he joined the Company in 2012. Prior to joining PSB, Dick served as the Managing Director of Grubb & Ellis in Sili-con Valley, was Vice President for Equity Office Properties, and was a Partner in several real estate development LLCs.

Eddie RuizVice President & Director, FacilitiesEddie has served as Vice Presi-dent, Director of Facilities since he joined the Company in 1999. Prior of joining PSB, Eddie spent over 20 years working as a con-sultant for several architectural and engineering firms.

Gene UhlmanVice President, ConstructionGene has served as VP of Con-struction since 2012 and has 17 years of experience with the Company. Prior to joining PSB, Gene was a Real Estate Manager for Murdock Devel-opment for 14 years.

4 Company Update

EXECUTIVE LEADERSHIP TEAM

5Company Update

PS Business Parks, Inc. (NYSE: PSB), a member of the S&P MidCap 400, is a real estate investment trust (REIT) that acquires, develops, owns and operates commercial properties, primarily multi-tenant indus-trial, flex and office space. The Company wholly owns nearly 29 million rentable square feet (“RSF”) concentrated in 12 submarkets spread across six states and holds a 95% interest in a 395-unit apartment complex.

SAME PARK OCCUPANCY as of March 31, 2019

94.6%

LIGHT INDUSTRIAL / FLEX product in gateway markets

86%

TOTAL OCCUPANCY as of March 31, 2019

94.0%

FORTRESS BALANCE SHEET with strong liquidity and no

debt outstanding

TENURED MANAGEMENT TEAM focused on disciplined growth to

generate quality operational cash flow

29 MILLION SQUARE FEET of infill real estate

395 MULTIFAMILY UNITSin Tysons, VA

A- CORPORATE CREDIT RATING

by Standard & Poor’s

CONSISTENT OUTPERFORMANCE of the S&P 500 and RMZ since going public in 1998

COMPANY OVERVIEW

Based on total RSF as of March 31, 20191

1

6 Company Update

AVERAGE ANNUAL TOTAL SHAREHOLDER RETURNConsistent market outperformance as a result of disciplined investing, best in class operations, and prudent balance sheet management.

12.5% AVERAGE RETURN

OVER THE PAST 20 YEARS

Source: FactSet December 31, 2018

OUTPERFORMINGS&P 500 BY

690 BASIS POINTSOVER THE PAST

20 YEARS

OUTPERFORMING NAREIT BY

25O BASIS POINTSOVER THE PAST

20 YEARS

7Company Update

VALUE-ADD redevelopment opportunities

throughout portfolio

GATEWAY MARKETS with high barriers to entry and

attractive demographics

FIRST & LAST MILE functional assets in

infill locations

BUSINESS PARK FOCUS multi-tenant buildings in

multi-building parks

DISCIPLINED INVESTMENTS adherence to below

replacement cost investing

We have built our finely tuned portfolio over several decades with dis-ciplined long-term investing strategies. We have achieved density and scale in each of our markets which allows our dedicated and experienced in-house teams to lease and manage effectively 100% of our portfolio. Our long track record of market outperformance is the direct result of our best-in-class property management coupled with disciplined investing.

DISCIPLINED INVESTMENT STRATEGY

EFFICIENT PLATFORM operational scale in each

of our markets

8 Company Update

NORTHERN VIRGINIANORTHERN CALIFORNIA±5.0 million square feet of warehouse, flex and office space in Northern Virginia

±2.9 million square feet of warehouse and flex space in the Greater Dallas Area

±7.2 million square feet of warehouse, flex and office space in the Greater Bay Area

SEATTLE±1.4 million square feet of warehouse, flex and office space in the Greater Seattle Area

FLORIDA±3.9 million square feet of warehouse and flex space in Doral, Boca Raton and Wellington

OPTIMAL PRODUCT IN PRIME MARKETS

DALLAS

SOUTHERN CALIFORNIA±3.4 million square feet of warehouse, flex and office space in Signal Hill, Lake Forest and San Diego

MARYLAND±2.6 million sqare feet of office, flex and warehouse space in Maryland

AUSTIN±2.0 million square feet of warehouse and flex space in the Greater Austin Area

9Company Update

Customer centric focus with a proactive approach

CUSTOMER FOCUS

PEOPLE FOCUSEDOPERATIONS MODEL

Operations management team averages 14 years of employment at PSB

EXPERIENCED MANAGEMENT TEAM

Decentralized operating platform staffed by seasoned local market experts, empowered to make maket-based leasing decisions

DECENTRALIZED PLATFORM

Sophisticated, data driven leasing and property management practices, including a disciplined approach to capital outlay (i.e. transaction costs)

INDUSTRY LEADING PRACTICES

10 Company Update

Stable and diversified customer base with limited exposure to any single industry.

DIVERSE CUSTOMER BASE

PSB prides itself on being the premier landlord to small-business America and serving a wide cus-tomer base throughout the country

5,000+CUSTOMERS NATIONWIDE

As of March 31, 2019

HIGHLIGHTS- No pending debt maturities

- $250 million corporate credit facility capacity, with additional

- Low leverage / Strong ratios

Debt & preferred to EBITDA 3.4x

- Investment Grade Ratings

Fixed charge coverage ratio 5.5x

S & P

Moody’s

A- (Corporate)

Baa2 (Preferred Equity)BBB (Preferred Equity)

$150 million accordion

As of March 31, 20191

1

1

11Company Update

FORTRESS BALANCE SHEETLow leverage and absence of large debt maturities provides the ability to seize accretive growth opportunities and recession resiliency.

6.4 BILLION TOTAL MARKET CAP

as of March 31, 2019

Common Equity (85.0%)Preferred Equity (15.0%)

Average in-place coupon: 5.4%

12 Company Update

OCCUPANCY & RENT TRENDSOur dedicated in-house leasing teams consistently drive strong occupancy and rent growth.

MARKET BASED LEASING

DECISIONS DRIVES GROWTH

5.0%AVERAGE ANNUAL

RENT GROWTHBETWEEN 2015 - 2018

94.2% AVG OCCUPANCY

SINCE 2015

1

13Company Update

Our Same Park REVPAF consistently outperforms our industrial peer group as a result of our dedicated in-house leasing teams consistently driving strong occupancy and rent growth.

14.0%REVPAF SAMEPARK GROWTH

SINCE 2014 2.6% AVG ANNUAL SAME

PARK REVPAF GROWTH SINCE 2014

OVER 4YEARS

OF CONSECUTIVESAME PARK

REVPAF GROWTH

1 Q119 rental income has been annualized

REVENUE PER AVAILABLE FOOT (REVPAF)

Note: Same Park REVPAF represents rental income earned per total Same Park weighted average available square foot reported during the period presented

14 Company Update

NET OPERATING INCOME TRENDStrong fundamentals and adherence to disciplined property management have promoted a long pattern of Same Park net operating income (“NOI”) growth.

22.1%NOI GROWTH

SINCE 2014 3.1% AVG ANNUAL SAME PARK NOI GROWTH

SINCE 2012

7 YEARS OF CONSECUTIVE

NOI GROWTH

Note: Amounts shown in the table above reflect the reported Same Park NOI for each respective period

Disclosure: NOI is a measure not defined in accordance with U.S. generally accepted accounting principles (“GAAP”). Refer to our quarterly Supplemental Information Package for the definition and reconciliation of this measure to its closest analogous GAAP measure.

15Company Update

FOCUSED APPROACH ON

GENERIC, REUSABLE IMPROVEMENTS

DYNAMIC PORTFOLIO

CHANGING WITH DECREASING

OFFICE EXPOSURE

CAPITAL EXPENDITURESSame Park recurring capital expenditures have generally trended downward as the result of effective transaction cost containment strategies (i.e. make-ready and leasing costs).

Disclosure: NOI is a measure not defined in accordance with U.S. generally accepted accounting principles (“GAAP”). Refer to our quarterly Supplemental Information Package for the definition and reconciliation of this measure to its closest analogous GAAP measure.

DEDICATED IN-HOUSE TEAMS

MINIMIZE OURTRANSACTION

COSTS

% of

Net O

pera

ting I

ncom

e

Note: Amounts shown in the table above reflect the reported Same Park data for each respective period

16 Company Update

KEY PERFORMANCE METRICSFocus on driving NOI growth and containing capital expenditures has led to expanding Core Funds From Operations (“Core FFO”) and Funds Available for Distribution (“FAD”).

75.5%FAD GROWTH

SINCE 2012 7 YEARS OF CONSECUTIVE CORE FFO AND FAD

GROWTH

50.1% CORE FFO GROWTHSINCE 2012

Disclosure: Core FFO and FAD are non-GAAP measures. Refer to our quarterly Supplemental Information Package for the definitions and reconciliations of these measures to their closest analogous GAAP measures.

17Company Update

As of March 31, 20191

1

1

Average rent per unit was $2,074

DEVELOPMENT UPDATE

- Next phase of development at The Mile- Approximately 400 units- Approval expected in late 2019 with construction commencing as soon as one year thereafter

BEXLEY AT THE MILE - TYSONS, VA

The Mile is our 45 contiguous acre property located in Tysons, Virginia with a 3 million square foot master-plan redevelopment pro-posal currently under Fairfax County review. The property is Metro accessible and located in the top-rated McLean School District.

THE MILE - TYSONS, VA

- Property opened June 1, 2017- PSB holds 95% JV interest- 395 total units, with 17% offered as workforce housing

HIGHGATE AT THE MILE

- Total project costs $115.4 million

Average unit size 867 square feet

94.9% occupancy

Project costs total includes unrealized land appreciation of $6.0 million

ENERGY EFFICIENCY & ENVIRONMENTAL INITIATIVES

18 Company Update

ENVIRONMENTALLYRESPONSIBLE

19Company Update

SOCIAL RESPONSIBILITYDIVERSITY IN OUR WORKPLACE OF 156 EMPLOYEES

President & CEO is a woman and diverse

63% Independent

25% Women

Affirmative Action Plan Employer

38% Under the age of 60

GENDER & RACE

DIVERSITY & INDEPENDENCE OF BOARD OF DIRECTORS

52% OF EMPLOYEES ARE WOMEN

37% OF WOMEN IN A SUPERVISORY ROLE

41% OF EMPLOYEES ARE NON-WHITE, WITH 27% IN A

SUPERVISORY ROLE

701 WESTERN AVENUEGLENDALE, CA 91201

T 818.244.8080psbusinessparks.com

CONTACT: JEFF HEDGES, CFO818.244.8080 EXT. 1649

Additional information on our Company, including portfolio information, SEC filings and other investor resources can be found on our corporate website

BUILDING OUR LEAD