Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American: FSP), a real estate investment trust (REIT), announced its results for the first quarter ended March 31, 2025.
George J. Carter, Chairman and Chief Executive Officer, commented as follows:
“We continue to prioritize two primary objectives: The first is to advance our leasing efforts to improve occupancy across the portfolio. Despite the modest level of actual leasing during the first quarter of 2025, we are encouraged by the current level of prospective leasing activity in our active pipeline, which is more robust than we have seen during the past several years and includes some larger potential space requirements from tenants that are considering several of our properties. The second objective is to continue to pursue select property dispositions, should they make sense to sell relative to their respective short to intermediate term value creation potential. Accordingly, we are actively marketing several properties totaling approximately one million square feet for potential disposition. Assuming that demand, pricing and liquidity allow us to transact on one or more of these potential dispositions, we intend to use the net proceeds primarily for the continued repayment of debt. As of March 31, 2025, our total indebtedness was approximately $250 million, equivalent to approximately $52 per square foot on our remaining approximately 4.8 million square foot directly-owned property portfolio.”
Financial Highlights
- GAAP net loss was $21.4 million, or $0.21 per basic and diluted share for the three months ended March 31, 2025.
- Funds From Operations (FFO) was $2.7 million, or $0.03 per basic and diluted share, for the three months ended March 31, 2025.
Leasing Highlights
- During the three months ended March 31, 2025, we leased approximately 60,000 square feet of space from renewals and expansions of existing tenants.
- Our directly-owned real estate portfolio of 14 properties, totaling approximately 4.8 million square feet, was approximately 69.2% leased as of March 31, 2025, compared to approximately 70.3% leased as of December 31, 2024. The decrease in the leased percentage is primarily a result of lease expirations during the three months ended March 31, 2025.
- The weighted average GAAP base rent per square foot achieved on leasing activity during the three months ended March 31, 2025, was $29.64, or 3.4% higher than average rents in the respective properties for the three months ended March 31, 2024. The average lease term on leases signed during the three months ended March 31, 2025, was 5.2 years compared to 6.3 years during the year ended December 31, 2024. Overall, the portfolio weighted average rent per occupied square foot was $31.21 as of March 31, 2025, compared to $31.77 as of December 31, 2024.
- We believe that our continuing portfolio of real estate is well located, primarily in the Sunbelt and Mountain West geographic regions, and consists of high-quality assets with upside leasing potential.
Investment Highlights
- We continue to believe that the current price of our common stock does not accurately reflect the intrinsic value of our underlying real estate assets. We will continue to seek to increase shareholder value by pursuing the sale of select properties when we believe that short-to-intermediate term valuation potential has been reached.
- Since December 2020, our property dispositions have resulted in aggregate gross proceeds of approximately $1.1 billion and reflect an average sales price per square foot of approximately $211.
- Since December 2020, we have used net proceeds from property dispositions to reduce our total indebtedness by approximately 75%, from approximately $1.0 billion to approximately $250 million.
Dividends
- On April 7, 2025, we announced that our Board of Directors declared a quarterly cash dividend for the three months ended March 31, 2025, of $0.01 per share of common stock that will be paid on May 8, 2025, to stockholders of record on April 17, 2025.
Consolidation of Sponsored REIT
As of January 1, 2023, we consolidated the operations of our Monument Circle sponsored REIT into our financial statements. Additional information about the consolidation of Monument Circle can be found in Note 1, “Organization, Properties, Basis of Presentation, Financial Instruments and Recent Accounting Standards”, Note 8, “Disposition of Properties and Assets Held for Sale” and Note 10, “Subsequent Events”, in the Notes to Consolidated Financial Statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2025.
Non-GAAP Financial Information
A reconciliation of Net loss to FFO, Adjusted Funds From Operations (AFFO) and Sequential Same Store NOI and our definitions of FFO, AFFO and Sequential Same Store NOI can be found on Supplementary Schedules H and I.
2025 Net Income (Loss), FFO and Disposition Guidance
At this time, due primarily to economic conditions and uncertainty surrounding the timing and amount of proceeds received from property dispositions, we are continuing suspension of Net Income (Loss), FFO and property disposition guidance.
Real Estate Update
Supplementary schedules provide property information for the Company’s owned and consolidated properties as of March 31, 2025. The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.fspreit.com.
Today’s news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.fspreit.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.
Earnings Call
A conference call is scheduled for April 30, 2025, at 11:00 a.m. (ET) to discuss the first quarter 2025 results. To access the call, please dial 888-440-4368 and use conference ID 5398803. Internationally, the call may be accessed by dialing 646-960-0856 and using conference ID 5398803. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.fspreit.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.
About Franklin Street Properties Corp.
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. FSP is focused on long-term growth and appreciation, as well as current income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.fspreit.com.
Forward-Looking Statements
Statements made in this press release that state FSP’s or management’s intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements, such as those relating to expectations for future potential leasing activity, expectations for future potential property dispositions, the payment of dividends and the repayment of debt in future periods, value creation/enhancement in future periods and expectations for growth and leasing activities in future periods that are based on current judgments and current knowledge of management and are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, adverse changes in general economic or local market conditions, including as a result of the long-term effects of the COVID-19 pandemic, wars, terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, impacts of changes in tariffs that the United States and other countries have announced or implemented, as well as any additional new tariffs, trade restrictions or export regulations that may be implemented or reversed in the future, inflation rates, interest rates, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated, such as utility rate and usage increases, delays in construction schedules, unanticipated increases in construction costs, increases in the level of general and administrative costs as a percentage of revenues as revenues decrease as a result of property dispositions, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the “Risk Factors” set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, as updated in Part II Item 1A of our Quarterly Report on Form 10-Q for the three months ended March 31, 2025, which may be further updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, acquisitions, dispositions, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.
|
|
Franklin Street Properties Corp. Earnings Release Supplementary Information Table of Contents |
|
|
|
Franklin Street Properties Corp. Financial Results |
A-C |
Real Estate Portfolio Summary Information |
D |
Portfolio and Other Supplementary Information |
E |
Percentage of Leased Space |
F |
Largest 20 Tenants – FSP Owned Portfolio |
G |
Reconciliation and Definitions of Funds From Operations (FFO) and Adjusted |
|
Funds From Operations (AFFO) |
H |
Reconciliation and Definition of Sequential Same Store results to Property Net |
|
Operating Income (NOI) and Net Loss |
I |
|
|
Franklin Street Properties Corp. Financial Results Supplementary Schedule A Condensed Consolidated Statements of Operations (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
For the |
||||||
|
|
Three Months Ended |
||||||
|
|
March 31, |
||||||
(in thousands, except per share amounts) |
|
2025 |
|
2024 |
||||
|
|
|
|
|
|
|
||
Revenue: |
|
|
|
|
|
|
||
Rental |
|
$ |
27,107 |
|
|
$ |
31,225 |
|
Total revenue |
|
|
27,107 |
|
|
|
31,225 |
|
|
|
|
|
|
|
|
||
Expenses: |
|
|
|
|
|
|
||
Real estate operating expenses |
|
|
10,095 |
|
|
|
11,019 |
|
Real estate taxes and insurance |
|
|
5,369 |
|
|
|
5,936 |
|
Depreciation and amortization |
|
|
10,824 |
|
|
|
11,625 |
|
General and administrative |
|
|
3,484 |
|
|
|
4,159 |
|
Interest |
|
|
5,691 |
|
|
|
6,846 |
|
Total expenses |
|
|
35,463 |
|
|
|
39,585 |
|
|
|
|
|
|
|
|
||
Loss on extinguishment of debt |
|
|
(2 |
) |
|
|
(137 |
) |
Loss on sale of properties and impairment of assets held for sale, net |
|
|
(13,284 |
) |
|
|
(5 |
) |
Interest income |
|
|
259 |
|
|
|
1,008 |
|
Loss before taxes |
|
|
(21,383 |
) |
|
|
(7,494 |
) |
Tax expense |
|
|
52 |
|
|
|
58 |
|
Net loss |
|
$ |
(21,435 |
) |
|
$ |
(7,552 |
) |
|
|
|
|
|
|
|
||
Weighted average number of shares outstanding, basic and diluted |
|
|
103,567 |
|
|
|
103,430 |
|
|
|
|
|
|
|
|
||
Loss per share, basic and diluted: |
|
|
|
|
|
|
||
Net loss per share, basic and diluted |
|
$ |
(0.21 |
) |
|
$ |
(0.07 |
) |
Franklin Street Properties Corp. Financial Results Supplementary Schedule B Condensed Consolidated Balance Sheets (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
March 31, |
|
December 31, |
||||
(in thousands, except share and par value amounts) |
|
2025 |
|
2024 |
||||
Assets: |
|
|
|
|
|
|
||
Real estate assets: |
|
|
|
|
|
|
||
Land |
|
$ |
98,882 |
|
|
$ |
105,298 |
|
Buildings and improvements |
|
|
1,083,971 |
|
|
|
1,096,265 |
|
Fixtures and equipment |
|
|
11,289 |
|
|
|
11,053 |
|
|
|
|
1,194,142 |
|
|
|
1,212,616 |
|
Less accumulated depreciation |
|
|
383,815 |
|
|
|
377,708 |
|
Real estate assets, net |
|
|
810,327 |
|
|
|
834,908 |
|
Acquired real estate leases, less accumulated amortization of $14,015 and $13,613, respectively |
|
|
3,737 |
|
|
|
4,205 |
|
Asset held for sale |
|
|
5,685 |
|
|
|
— |
|
Cash, cash equivalents and restricted cash |
|
|
31,559 |
|
|
|
42,683 |
|
Tenant rent receivables |
|
|
1,462 |
|
|
|
1,283 |
|
Straight-line rent receivable |
|
|
37,724 |
|
|
|
37,727 |
|
Prepaid expenses and other assets |
|
|
3,429 |
|
|
|
3,114 |
|
Office computers and furniture, net of accumulated depreciation of $1,081 and $1,073, respectively |
|
|
62 |
|
|
|
70 |
|
Deferred leasing commissions, net of accumulated amortization of $14,373 and $14,195, respectively |
|
|
22,381 |
|
|
|
22,941 |
|
Total assets |
|
$ |
916,366 |
|
|
$ |
946,931 |
|
|
|
|
|
|
|
|
||
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
||
Liabilities: |
|
|
|
|
|
|
||
Term loans payable, less unamortized financing costs of $1,773 and $2,220, respectively |
|
$ |
124,861 |
|
|
$ |
124,491 |
|
Series A & Series B Senior Notes, less unamortized financing costs of $950 and $1,191, respectively |
|
|
122,595 |
|
|
|
122,430 |
|
Accounts payable and accrued expenses |
|
|
27,510 |
|
|
|
34,067 |
|
Accrued compensation |
|
|
1,205 |
|
|
|
3,097 |
|
Tenant security deposits |
|
|
6,156 |
|
|
|
6,237 |
|
Lease liability |
|
|
612 |
|
|
|
707 |
|
Acquired unfavorable real estate leases, less accumulated amortization of $92 and $89, respectively |
|
|
41 |
|
|
|
45 |
|
Total liabilities |
|
|
282,980 |
|
|
|
291,074 |
|
|
|
|
|
|
|
|
||
Commitments and contingencies |
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Stockholders’ Equity: |
|
|
|
|
|
|
||
Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding |
|
|
— |
|
|
|
— |
|
Common stock, $.0001 par value, 180,000,000 shares authorized, 103,566,715 and 103,566,715 shares issued and outstanding, respectively |
|
|
10 |
|
|
|
10 |
|
Additional paid-in capital |
|
|
1,335,361 |
|
|
|
1,335,361 |
|
Accumulated distributions in excess of accumulated earnings |
|
|
(701,985 |
) |
|
|
(679,514 |
) |
Total stockholders’ equity |
|
|
633,386 |
|
|
|
655,857 |
|
Total liabilities and stockholders’ equity |
|
$ |
916,366 |
|
|
$ |
946,931 |
|
Franklin Street Properties Corp. Financial Results Supplementary Schedule C Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
For the |
||||||
|
|
Three Months Ended |
||||||
|
|
March 31, |
||||||
(in thousands) |
|
2025 |
|
2024 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(21,435 |
) |
|
$ |
(7,552 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization expense |
|
|
11,509 |
|
|
|
12,305 |
|
Amortization of above and below market leases |
|
|
— |
|
|
|
(6 |
) |
Amortization of other comprehensive income into interest expense |
|
|
— |
|
|
|
(355 |
) |
Loss on extinguishment of debt |
|
|
2 |
|
|
|
137 |
|
Loss on sale of properties and impairment of assets held for sale, net |
|
|
13,284 |
|
|
|
5 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Tenant rent receivables |
|
|
(179 |
) |
|
|
(9 |
) |
Straight-line rents |
|
|
70 |
|
|
|
206 |
|
Lease acquisition costs |
|
|
(74 |
) |
|
|
(122 |
) |
Prepaid expenses and other assets |
|
|
(225 |
) |
|
|
(400 |
) |
Accounts payable and accrued expenses |
|
|
(5,914 |
) |
|
|
(6,677 |
) |
Accrued compensation |
|
|
(1,892 |
) |
|
|
(2,448 |
) |
Tenant security deposits |
|
|
(81 |
) |
|
|
64 |
|
Payment of deferred leasing commissions |
|
|
(546 |
) |
|
|
(2,236 |
) |
Net cash used for operating activities |
|
|
(5,481 |
) |
|
|
(7,088 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Property improvements, fixtures and equipment |
|
|
(4,454 |
) |
|
|
(8,759 |
) |
Proceeds received from sales of properties |
|
|
— |
|
|
|
34,329 |
|
Net cash provided by (used in) investing activities |
|
|
(4,454 |
) |
|
|
25,570 |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
Distributions to stockholders |
|
|
(1,036 |
) |
|
|
(1,034 |
) |
Repayments of Bank note payable |
|
|
— |
|
|
|
(22,667 |
) |
Repayments of Term loans payable |
|
|
(77 |
) |
|
|
(28,963 |
) |
Repayments of Series A&B Senior Notes |
|
|
(76 |
) |
|
|
(50,370 |
) |
Deferred financing costs |
|
|
— |
|
|
|
(5,549 |
) |
Net cash used for financing activities |
|
|
(1,189 |
) |
|
|
(108,583 |
) |
Net decrease in cash, cash equivalents and restricted cash |
|
|
(11,124 |
) |
|
|
(90,101 |
) |
Cash, cash equivalents and restricted cash, beginning of year |
|
|
42,683 |
|
|
|
127,880 |
|
Cash, cash equivalents and restricted cash, end of period |
|
$ |
31,559 |
|
|
$ |
37,779 |
|
Franklin Street Properties Corp. Earnings Release Supplementary Schedule D Real Estate Portfolio Summary Information (Unaudited & Approximated) |
||||||
|
|
|
|
|
||
Commercial portfolio lease expirations (1) |
|
|
|
|
||
|
|
Total |
|
% of |
||
Year |
|
Square Feet |
|
Portfolio |
||
2025 |
|
246,305 |
|
4.9 |
% |
|
2026 |
|
582,524 |
|
|
11.6 |
% |
2027 |
|
322,539 |
|
|
6.4 |
% |
2028 |
|
257,393 |
|
|
5.1 |
% |
2029 |
|
481,560 |
|
|
9.6 |
% |
Thereafter (2) |
|
3,129,895 |
|
|
62.4 |
% |
|
|
5,020,216 |
|
|
100.0 |
% |
____________________ |
||
(1) |
|
Percentages are determined based upon total square footage. |
(2) |
|
Includes 1,687,212 square feet of vacancies at our owned and consolidated properties as of March 31, 2025. |
|
|
|
|
|
|
|
|
|
|
|
|||||||
(dollars & square feet in 000's) |
|
As of March 31, 2025 |
|||||||||||||||
|
|
|
|
|
|
|
% of |
|
Square |
|
% of |
||||||
State |
|
Properties |
|
Investment |
|
Portfolio |
|
Feet |
|
Portfolio |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Colorado |
|
4 |
|
|
$ |
438,900 |
|
|
54.2 |
% |
|
2,140 |
|
|
42.6 |
% |
|
Texas |
|
7 |
|
|
258,768 |
|
31.9 |
% |
|
|
1,909 |
|
38.0 |
% |
|||
Minnesota |
|
3 |
|
|
|
112,659 |
|
|
13.9 |
% |
|
|
757 |
|
|
15.1 |
% |
Indiana |
|
1 |
|
|
|
- |
|
|
0.0 |
% |
|
|
214 |
|
|
4.3 |
% |
Total |
|
15 |
|
|
$ |
810,327 |
|
|
100.0 |
% |
|
|
5,020 |
|
|
100.0 |
% |
Franklin Street Properties Corp. Earnings Release Supplementary Schedule E Portfolio and Other Supplementary Information (Unaudited & Approximated) |
||||
Recurring Capital Expenditures |
|
|
|
|
|
|
|
||
(in thousands) |
|
For the Three Months Ended |
||
|
|
31-Mar-25 |
||
Tenant improvements |
|
$ |
2,374 |
|
Deferred leasing costs |
|
|
545 |
|
Non-investment capex |
|
|
1,258 |
|
|
|
$ |
4,177 |
|
(in thousands) |
|
For the Three Months Ended |
|
Year Ended |
||||||||||||||||
|
|
31-Mar-24 |
|
30-Jun-24 |
|
30-Sep-24 |
|
31-Dec-24 |
|
31-Dec-24 |
||||||||||
Tenant improvements |
|
$ |
2,619 |
|
|
$ |
2,558 |
|
|
$ |
4,444 |
|
|
$ |
4,173 |
|
|
$ |
13,794 |
|
Deferred leasing costs |
|
|
2,237 |
|
|
511 |
|
|
421 |
|
|
2,974 |
|
|
6,143 |
|||||
Non-investment capex |
|
|
1,019 |
|
|
|
1,480 |
|
|
|
1,658 |
|
|
|
2,568 |
|
|
|
6,725 |
|
|
|
$ |
5,875 |
|
|
$ |
4,549 |
|
|
$ |
6,523 |
|
|
$ |
9,715 |
|
|
$ |
26,662 |
|
|
|
|
|
|
||||
Square foot & leased percentages |
|
March 31, |
|
December 31, |
||||
|
|
|
2025 |
|
|
|
2024 |
|
Owned Properties: |
|
|
|
|
||||
Number of properties |
|
|
14 |
|
|
|
14 |
|
Square feet |
|
|
4,806,456 |
|
|
|
4,806,253 |
|
Leased percentage |
|
|
69.2 |
% |
|
|
70.3 |
% |
|
|
|
|
|
||||
Consolidated Property - Single Asset REIT (SAR): |
|
|
|
|
||||
Number of properties |
|
|
1 |
|
|
|
1 |
|
Square feet |
|
|
213,760 |
|
|
|
213,760 |
|
Leased percentage |
|
|
4.1 |
% |
|
|
4.1 |
% |
|
|
|
|
|
||||
Total Owned and Consolidated Properties: |
|
|
|
|
||||
Number of properties |
|
|
15 |
|
|
|
15 |
|
Square feet |
|
|
5,020,216 |
|
|
|
5,020,013 |
|
Leased percentage |
|
|
66.4 |
% |
|
|
67.5 |
% |
Franklin Street Properties Corp. Earnings Release Supplementary Schedule F Percentage of Leased Space (Unaudited & Estimated) |
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Property Name |
|
Location |
|
Square Feet |
|
% Leased (1) as of 31-Dec-24 |
|
Fourth Quarter Average % Leased (2) |
|
% Leased (1) as of 31-Mar-25 |
|
First Quarter Average % Leased (2) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
1 |
|
PARK TEN |
|
Houston, TX |
|
157,609 |
|
83.5 |
% |
|
83.5 |
% |
|
83.5 |
% |
|
83.5 |
% |
|
2 |
|
PARK TEN PHASE II |
|
Houston, TX |
|
156,746 |
|
|
75.5 |
% |
|
69.7 |
% |
|
75.5 |
% |
|
75.5 |
% |
3 |
|
GREENWOOD PLAZA |
|
Englewood, CO |
|
196,236 |
|
|
65.0 |
% |
|
65.0 |
% |
|
65.0 |
% |
|
65.0 |
% |
4 |
|
ADDISON |
|
Addison, TX |
|
289,333 |
|
|
79.9 |
% |
|
79.9 |
% |
|
69.2 |
% |
|
69.2 |
% |
5 |
|
LIBERTY PLAZA |
|
Addison, TX |
|
217,841 |
|
|
78.4 |
% |
|
76.2 |
% |
|
78.4 |
% |
|
78.4 |
% |
6 |
|
ELDRIDGE GREEN |
|
Houston, TX |
|
248,399 |
|
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
|
100.0 |
% |
7 |
|
121 SOUTH EIGHTH ST |
|
Minneapolis, MN |
|
297,744 |
|
|
78.5 |
% |
|
76.4 |
% |
|
78.5 |
% |
|
78.3 |
% |
8 |
|
801 MARQUETTE AVE |
|
Minneapolis, MN |
|
129,691 |
|
|
91.8 |
% |
|
91.8 |
% |
|
91.8 |
% |
|
91.8 |
% |
9 |
|
LEGACY TENNYSON CTR |
|
Plano, TX |
|
209,562 |
|
|
51.0 |
% |
|
51.0 |
% |
|
51.0 |
% |
|
51.0 |
% |
10 |
|
WESTCHASE I & II |
|
Houston, TX |
|
629,025 |
|
|
65.5 |
% |
|
65.5 |
% |
|
65.1 |
% |
|
65.1 |
% |
11 |
|
1999 BROADWAY |
|
Denver, CO |
|
682,639 |
|
|
50.2 |
% |
|
50.4 |
% |
|
51.2 |
% |
|
50.3 |
% |
12 |
|
1001 17TH STREET |
|
Denver, CO |
|
649,400 |
|
|
75.4 |
% |
|
75.4 |
% |
|
75.4 |
% |
|
75.4 |
% |
13 |
|
PLAZA SEVEN |
|
Minneapolis, MN |
|
330,096 |
|
|
52.8 |
% |
|
52.2 |
% |
|
52.8 |
% |
|
52.8 |
% |
14 |
|
600 17TH STREET |
|
Denver, CO |
|
612,135 |
|
|
77.1 |
% |
|
76.8 |
% |
|
72.5 |
% |
|
73.6 |
% |
|
|
OWNED PORTFOLIO |
|
|
|
4,806,456 |
|
|
70.3 |
% |
|
69.8 |
% |
|
69.2 |
% |
|
69.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
15 |
|
MONUMENT CIRCLE (3) |
|
Indianapolis, IN |
|
213,760 |
|
|
4.1 |
% |
|
4.1 |
% |
|
4.1 |
% |
|
4.1 |
% |
|
|
OWNED & CONSOLIDATED PORTFOLIO |
|
|
|
5,020,216 |
|
|
67.5 |
% |
|
67.0 |
% |
|
66.4 |
% |
|
66.4 |
% |
____________________ |
||
(1) |
|
% Leased as of month's end includes all leases that expire on the last day of the quarter. |
(2) |
|
Average quarterly percentage is the average of the end of the month leased percentage for each of the three months during the quarter. |
(3) |
|
Consolidated property as of January 1, 2023, which was previously a managed property. |
Franklin Street Properties Corp. Earnings Release Supplementary Schedule G Largest 20 Tenants – FSP Owned and Consolidated Portfolio
(Unaudited & Estimated)
|
||||||||||
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
% of |
||||
|
|
Tenant |
|
Sq Ft |
|
Portfolio |
||||
1 |
|
CITGO Petroleum Corporation |
|
248,399 |
|
4.9 |
% |
|||
2 |
|
EOG Resources, Inc. |
|
169,167 |
|
|
3.4 |
% |
||
3 |
|
US Government |
|
168,573 |
|
|
3.4 |
% |
||
4 |
|
Kaiser Foundation Health Plan, Inc. |
|
120,979 |
|
|
2.4 |
% |
||
5 |
|
Deluxe Corporation |
|
98,922 |
|
|
2.0 |
% |
||
6 |
|
Ping Identity Corp. |
|
89,856 |
|
|
1.8 |
% |
||
7 |
|
Olin Corporation |
|
81,480 |
|
|
1.6 |
% |
||
8 |
|
Permian Resources Operating, LLC |
|
67,856 |
|
|
1.3 |
% |
||
9 |
|
Hall and Evans LLC |
|
65,878 |
|
|
1.3 |
% |
||
10 |
|
Cyxtera Management, Inc. |
|
61,826 |
|
|
1.2 |
% |
||
11 |
|
Precision Drilling (US) Corporation |
|
59,569 |
|
|
1.2 |
% |
||
12 |
|
PwC US Group |
|
54,334 |
|
|
1.1 |
% |
||
13 |
|
Coresite, LLC |
|
49,518 |
|
|
1.0 |
% |
||
14 |
|
Schwegman, Lundberg & Woessner, P.A. |
|
46,269 |
|
|
0.9 |
% |
||
15 |
|
Invenergy, LLC. |
|
42,505 |
|
|
0.9 |
% |
||
16 |
|
Ark-La-Tex Financial Services, LLC. |
|
41,011 |
|
|
0.8 |
% |
||
17 |
|
Chevron U.S.A., Inc. |
|
35,088 |
|
|
0.7 |
% |
||
18 |
|
QB Energy Operating, LLC |
|
34,063 |
|
|
0.7 |
% |
||
19 |
|
CarOffer, LLC. |
|
30,913 |
|
|
0.6 |
% |
||
20 |
|
WDT Acquisition Corporation |
|
30,913 |
|
|
0.6 |
% |
||
|
|
Total |
|
1,597,119 |
|
|
31.8 |
% |
||
Franklin Street Properties Corp. Earnings Release Supplementary Schedule H Reconciliation and Definitions of Funds From Operations (“FFO”) and Adjusted Funds From Operations (“AFFO”) |
||||||||
A reconciliation of Net loss to FFO and AFFO is shown below and a definition of FFO and AFFO is provided on Supplementary Schedule I. Management believes FFO and AFFO are used broadly throughout the real estate investment trust (REIT) industry as measurements of performance. The Company has included the National Association of Real Estate Investment Trusts (NAREIT) FFO definition as of May 17, 2016 in the table and notes that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. The Company’s computation of FFO and AFFO may not be comparable to FFO or AFFO reported by other REITs or real estate companies that define FFO or AFFO differently. |
||||||||
|
|
|
|
|
|
|
||
Reconciliation of Net loss to FFO and AFFO: |
|
Three Months Ended |
||||||
|
|
March 31, |
||||||
(In thousands, except per share amounts) |
|
2025 |
|
2024 |
||||
|
|
|
|
|
|
|
||
Net loss |
|
$ |
(21,435 |
) |
|
$ |
(7,552 |
) |
Loss on sale of properties and impairment of asset held for sale, net |
|
|
13,284 |
|
|
|
5 |
|
Depreciation & amortization |
|
|
10,824 |
|
|
|
11,619 |
|
NAREIT FFO |
|
|
2,673 |
|
|
|
4,072 |
|
Lease Acquisition costs |
|
|
54 |
|
|
|
121 |
|
Funds From Operations (FFO) |
|
$ |
2,727 |
|
|
$ |
4,193 |
|
|
|
|
|
|
|
|
||
Funds From Operations (FFO) |
|
$ |
2,727 |
|
|
$ |
4,193 |
|
Loss on extinguishment of debt |
|
|
2 |
|
|
|
137 |
|
Amortization of deferred financing costs |
|
|
685 |
|
|
|
680 |
|
Straight-line rent |
|
|
70 |
|
|
|
206 |
|
Tenant improvements |
|
|
(2,374 |
) |
|
|
(2,619 |
) |
Leasing commissions |
|
|
(545 |
) |
|
|
(2,237 |
) |
Non-investment capex |
|
|
(1,258 |
) |
|
|
(1,019 |
) |
Adjusted Funds From Operations (AFFO) |
|
$ |
(693 |
) |
|
$ |
(659 |
) |
|
|
|
|
|
|
|
||
Per Share Data |
|
|
|
|
|
|
||
EPS |
|
$ |
(0.21 |
) |
|
$ |
(0.07 |
) |
FFO |
|
$ |
0.03 |
|
|
$ |
0.04 |
|
AFFO |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
|
|
|
|
|
||
Weighted average shares (basic and diluted) |
|
|
103,567 |
|
|
|
103,430 |
|
Funds From Operations (“FFO”)
The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income or loss (computed in accordance with GAAP), excluding gains (or losses) from sales of property, hedge ineffectiveness, acquisition costs of newly acquired properties that are not capitalized and lease acquisition costs that are not capitalized plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges on mortgage loans, properties or investments in non-consolidated REITs, and after adjustments to exclude equity in income or losses from, and, to include the proportionate share of FFO from, non-consolidated REITs.
FFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs.
Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO as of May 17, 2016 in the table and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do.
We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.
Adjusted Funds From Operations (“AFFO”)
The Company also evaluates performance based on Adjusted Funds From Operations, which we refer to as AFFO. The Company defines AFFO as (1) FFO, (2) excluding loss on extinguishment of debt that is non-cash, (3) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs, (4) excluding the effect of straight-line rent, (5) plus the amortization of deferred financing costs, (6) plus the value of shares issued as compensation and (7) less recurring capital expenditures that are generally for maintenance of properties, which we call non-investment capex or are second generation capital expenditures. Second generation costs include re-tenanting space after a tenant vacates, which include tenant improvements and leasing commissions.
We exclude development/redevelopment activities, capital expenditures planned at acquisition and costs to reposition a property. We also exclude first generation leasing costs, which are generally to fill vacant space in properties we acquire or were planned for at acquisition.
AFFO should not be considered as an alternative to net income or loss (determined in accordance with GAAP), nor as an indicator of the Company’s financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company’s liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company’s needs. Other real estate companies may define this term in a different manner. We believe that in order to facilitate a clear understanding of the results of the Company, AFFO should be examined in connection with net income or loss and cash flows from operating, investing and financing activities in the consolidated financial statements.
Franklin Street Properties Corp. Earnings Release
|
||||||||||||||||||
|
||||||||||||||||||
Net Operating Income (“NOI”)
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Rentable |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Square Feet |
|
Three Months Ended |
|
Three Months Ended |
|
Inc |
|
% |
||||||||
(in thousands) |
|
or RSF |
|
31-Mar-25 |
|
31-Dec-24 |
|
(Dec) |
|
Change |
||||||||
Region |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
MidWest |
|
971 |
|
|
|
1,139 |
|
|
|
992 |
|
|
|
147 |
|
|
14.8 |
% |
South |
|
1,909 |
|
|
4,331 |
|
|
4,549 |
|
|
|
(218 |
) |
|
(4.8 |
)% |
||
West |
|
2,140 |
|
|
|
5,849 |
|
|
|
5,670 |
|
|
|
179 |
|
|
3.2 |
% |
Property NOI* from Owned Properties |
|
5,020 |
|
|
|
11,319 |
|
|
|
11,211 |
|
|
|
108 |
|
|
1.0 |
% |
Disposition and Acquisition Properties (a) |
|
- |
|
|
|
24 |
|
|
|
(88 |
) |
|
|
112 |
|
|
1.0 |
% |
NOI* |
|
5,020 |
|
|
$ |
11,343 |
|
|
$ |
11,123 |
|
|
$ |
220 |
|
|
2.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sequential Same Store |
|
|
|
$ |
11,319 |
|
|
$ |
11,211 |
|
|
$ |
108 |
|
|
1.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Less Nonrecurring |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Items in NOI* (b) |
|
|
|
|
55 |
|
|
|
185 |
|
|
|
(130 |
) |
|
1.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Comparative |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Sequential Same Store |
|
|
|
$ |
11,264 |
|
|
$ |
11,026 |
|
|
$ |
238 |
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reconciliation to |
|
|
|
Three Months Ended |
|
Three Months Ended |
|
|
|
|
|
|||||||
Net loss |
|
|
|
31-Mar-25 |
|
31-Dec-24 |
|
|
|
|
|
|||||||
Net loss |
|
|
|
$ |
(21,435 |
) |
|
$ |
(8,526 |
) |
|
|
|
|
|
|||
Add (deduct): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loss on extinguishment of debt |
|
|
|
|
2 |
|
|
|
428 |
|
|
|
|
|
|
|||
Loss on sale of properties and impairment of assets held for sale, net |
|
|
|
|
13,284 |
|
|
|
367 |
|
|
|
|
|
|
|||
Management fee income |
|
|
|
|
(380 |
) |
|
|
(386 |
) |
|
|
|
|
|
|||
Depreciation and amortization |
|
|
|
|
10,824 |
|
|
|
10,757 |
|
|
|
|
|
|
|||
Amortization of above/below market leases |
|
|
|
|
— |
|
|
|
(1 |
) |
|
|
|
|
|
|||
General and administrative |
|
|
|
|
3,484 |
|
|
|
2,815 |
|
|
|
|
|
|
|||
Interest expense |
|
|
|
|
5,691 |
|
|
|
5,912 |
|
|
|
|
|
|
|||
Interest income |
|
|
|
|
(259 |
) |
|
|
(395 |
) |
|
|
|
|
|
|||
Non-property specific items, net |
|
|
|
|
132 |
|
|
|
152 |
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
NOI* |
|
|
|
$ |
11,343 |
|
|
$ |
11,123 |
|
|
|
|
|
|
|||
(a) |
|
We define Disposition and Acquisition Properties as properties that were sold acquired or consolidated and do not have operating activity for all periods presented. |
(b) |
|
Nonrecurring Items in NOI include proceeds from bankruptcies, lease termination fees or other significant nonrecurring income or expenses, which may affect comparability. |
|
|
|
*Excludes NOI from investments in and interest income from secured loans to non-consolidated REITs. |
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250429558175/en/
Contacts
Georgia Touma (877) 686-9496