Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or
“our”) (NYSE MKT: FSP), a real estate investment trust (REIT),
announced today Funds From Operations (FFO) of $27.5 million or
$0.27 per share for the fourth quarter ended December 31, 2014; and
FFO of $112.5 million or $1.12 per share for the full year ended
December 31, 2014. Net income was $4.3 million or $0.04 per share
for the fourth quarter ended December 31, 2014 and $13.1 million or
$0.13 per share for the year ended December 31, 2014.
The Company evaluates its performance based on
FFO, Net Income and EPS and believes each is an important measure.
A reconciliation of Net Income to FFO, which is a non-GAAP
financial measure, is provided on page 3 of this press release.
Three Months Ended December 31,
Year Ended December 31, (in 000's except per share data)
2014
2013
Increase(Decrease)
2014
2013
Increase(Decrease)
Net Income $ 4,295 $ 6,591 $ (2,296 ) $ 13,148
$ 19,827 $ (6,679 ) FFO $ 27,525 $ 29,220 $ (1,695 )
$ 112,462 $ 100,832 $ 11,630 Per Share Data: EPS $
0.04 $ 0.07 $ (0.03 ) $ 0.13 $ 0.21 $ (0.08 ) FFO $ 0.27 $ 0.29 $
(0.02 ) $ 1.12 $ 1.07 $ 0.05 Weighted average shares
(diluted) 100,187 100,187 -
100,187 93,855 6,333
Comparing results for the fourth quarter of 2014 to the same
period in 2013, FFO decreased $1.7 million or $0.02 per share to
$27.5 million or $0.27 per share in 2014. The FFO decrease was
primarily from lower property income and higher personnel expenses,
which were partially offset by lower interest expense for the
quarter. Interest expense was lower as a result of lower spreads on
our revolving line of credit that was amended on October 29, 2014
and from lower amounts outstanding during the fourth quarter of
2014 compared to the fourth quarter of 2013. Net Income and EPS was
$4.3 million or $0.04 per share for the fourth quarter of 2014
compared to a net income of $6.6 million or $0.07 per share for the
fourth quarter of 2013.
Comparing results for the year ended December 31, 2014 to the
same period in 2013, FFO increased $11.6 million or $0.05 per share
to $112.5 million or $1.12 per share. The FFO increase was
primarily from higher property income from acquisitions made during
2013. These increases were partially offset by higher interest and
personnel related expenses in 2014 compared to 2013. Interest
expense was higher because we entered into a term loan on August
26, 2013, which is included in the full year results of 2014 and
was outstanding for only a portion of 2013. Net Income and EPS was
$13.1 million or $0.13 per share for the year ended December 31,
2014 compared to a net income of $19.8 million or $0.21 per share
for the same period in 2013.
George J. Carter, President and CEO, commented as
follows:
“For the fourth quarter of 2014, FSP's funds from operations, or
FFO, totaled approximately $27.5 million or $0.27 per share. For
the full year 2014, FSP's FFO totaled approximately $112.5 million
or $1.12 per share, a 4.7% increase per share over full year 2013.
FSP has grown its per share FFO over 33% during the last four
years. Dividend distributions declared for the fourth quarter of
2014 were approximately $19.0 million or $0.19 per share. Our
directly-owned real estate portfolio of 38 properties, totaling
approximately 9.6 million square feet, was approximately 92.8%
leased as of December 31, 2014, and our comparative same-store
growth totaled approximately 2.2% for the full year 2014.
During the fourth quarter of 2014, we completed the disposition
of our "Centennial" property located in Colorado Springs, Colorado
for approximately $15,500,000. A gain of $940,000 was realized as a
result of the sale. Centennial is a110,405 square foot single story
"flex" suburban office property that has been owned by FSP or an
FSP affiliate for over 14 years. It was our only property in
Colorado Springs. Currently, we are considering disposal of several
of our other suburban office assets that we believe are no longer
core to our long-term strategy. Also, in the fourth quarter, a
single asset REIT affiliate of FSP, "FSP Highland Place I Corp."
(or “Highland”), completed the sale of its suburban office property
located in the greater Denver, Colorado area. Our outstanding loan
with Highland totaling $3,395,000, which was secured by a first
mortgage on the Highland Place property, was repaid in full.
We acquired no additional office properties in 2014 primarily
because market pricing metrics on properties we were interested in
were too elevated to conform to our underwriting criteria. However,
as 2015 begins, we are actively pursuing a number of new property
acquisition opportunities within our primary markets. We anticipate
additional property acquisitions this year. We are also busy trying
to finalize potential anchor tenants/leases for our anticipated
2016 development effort in downtown Minneapolis, Minnesota at 801
Marquette Avenue South, and hope to be able to announce the size
and scope of this project later this year.
As we begin 2015, our property portfolio is operating smoothly
with existing and known upcoming vacancy square footage actively
being marketed to multiple potential tenants. We look forward with
anticipation to 2015 and beyond.”
Dividend Update
On January 9, 2015, the Company announced that its Board of
Directors declared a regular quarterly dividend for the three
months ended December 31, 2014 of $0.19 per share of common stock
that will be paid on February 12, 2015 to stockholders of record on
January 23, 2015.
FFO Guidance
Our full year FFO guidance for 2015 is updated to be in the
range of $1.03 to $1.08 per diluted share. This guidance (a)
excludes the impact of future acquisitions, dispositions, debt
financings or repayments or other capital market transactions; (b)
reflects estimates from our ongoing portfolio of properties, other
real estate investments and G&A expenses; and (c) reflects our
current expectations of economic conditions. We will update
guidance quarterly in our earnings releases. There can be no
assurance that the Company’s actual results will not differ
materially from the estimates set forth above.
Real Estate Update
Supplementary schedules provide property information for the
Company’s owned real estate portfolio and for two non-consolidated
REITs in which the Company holds preferred stock interests as of
December 31, 2014. 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.franklinstreetproperties.com.
Funds From Operations (FFO)
A reconciliation of Net Income to FFO is shown
below and a definition of FFO is provided on Supplementary Schedule
H. Management believes FFO is used broadly throughout the real
estate investment trust (REIT) industry as a measurement of
performance. Management also believes that FFO represents the most
accurate measure of activity and is the basis for distributions
paid to equity holders. The Company has included the NAREIT FFO
definition 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 may not be comparable to FFO reported by other
REITs or real estate companies that define FFO differently.
Reconciliation of Net
Income to FFO: Three Months Ended Year Ended December 31, December
31, (In thousands, except per share amounts)
2014
2013
2014
2013
Net income $ 4,295 $ 6,591 $ 13,148 $ 19,827 Gain on sale of
assets, less applicable income tax (940 ) (2,158 ) (940 ) (2,158 )
GAAP loss from non-consolidated REITs 269 543 1,760 1,358 FFO from
non-consolidated REITs 652 346 1,930 2,148 Depreciation &
amortization 23,249 23,886
96,550 79,090 NAREIT FFO 27,525
29,208 112,448 100,265 Acquisition costs of new properties -
12 14 568
Funds From Operations (FFO) $ 27,525 $ 29,220
$ 112,462 $ 100,833 Per Share
Data EPS $ 0.04 $ 0.07 $ 0.13 $ 0.21 FFO $ 0.27 $ 0.29 $ 1.12 $
1.07 Weighted average shares (basic and diluted)
100,187 100,187 100,187
93,855
Today’s news release, along with other news about Franklin
Street Properties Corp., is available on the Internet at
www.franklinstreetproperties.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 February 18, 2015 at 10:00
a.m. (ET) to discuss the fourth quarter 2014 results. To access the
call, please dial 1-877-507-4376. Internationally, the call may be
accessed by dialing 1-412-317-6014. To listen via live audio
webcast, please visit the Webcasts & Presentations section in
the Investor Relations section of the Company's website
(www.franklinstreetproperties.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 investing in institutional-quality
office properties in the U.S. FSP’s strategy is to invest in select
urban infill and central business district (CBD) properties, with
primary emphasis on our top five markets of Atlanta, Dallas,
Denver, Houston, and Minneapolis. FSP seeks value-oriented
investments with an eye towards 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.franklinstreetproperties.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 based on current judgments and current knowledge of
management, which 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, economic conditions in the United States,
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, 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, 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, 2014, as the same may be 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, 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 Definition of Funds From Operations
(FFO) H
Franklin Street Properties Corp. Financial
Results
Supplementary Schedule A
Condensed Consolidated Income (Loss)
Statements
(Unaudited)
For theThree Months
EndedDecember 31,
For theYear EndedDecember
31,
(in thousands, except per share amounts)
2014 2013
2014 2013
Revenue: Rental $ 61,022 $ 61,307 $ 243,341 $
206,926 Related party revenue: Management fees and interest income
from loans 1,465 1,717 6,241 6,646 Other
2 -
101 64 Total revenue
62,489 63,024
249,683 213,636
Expenses: Real estate operating expenses 16,334 15,223 62,032
51,100 Real estate taxes and insurance 9,288 8,912 36,857 31,616
Depreciation and amortization 23,174 23,976 95,915 78,839 Selling,
general and administrative 3,492 2,698 12,983 11,911 Interest
6,483 7,198
27,433 21,054
Total expenses 58,771
58,007 235,220
194,520 Income before interest income,
equity in losses of non-consolidated REITs and taxes 3,718 5,017
14,463 19,116 Interest income 1 6 3 16 Equity in losses of
non-consolidated REITs (269 ) (543 ) (1,760 ) (1,358 ) Gain on sale
of property, less applicable income tax
940 - 940
- Income before taxes on income 4,390
4,480 13,646 17,774 Taxes on income
95 128 498
480 Income from continuing operations
4,295 4,352
13,148 17,294
Discontinued operations: Income from discontinued
operations, net of income tax - 81 - 375 Gain on sale of property,
less applicable income tax -
2,158 -
2,158 Total discontinued operations
- 2,239
- 2,533 Net income
$ 4,295 $ 6,591
$ 13,148 $ 19,827 Weighted
average number of shares outstanding, basic and diluted
100,187 100,187
100,187 93,855
Earnings per share, basic and diluted, attributable to:
Continuing operations $ 0.04 $ 0.04 $ 0.13 $ 0.18 Discontinued
operations -
0.03 - 0.03
Net income per share, basic and diluted
$ 0.04 $ 0.07 $ 0.13
$ 0.21
Franklin Street Properties Corp. Financial
Results
Supplementary Schedule B
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, (in thousands, except share and par
value amounts)
2014
2013 Assets: Real estate
assets: Land $ 183,930 $ 185,479 Buildings and improvements
1,604,984 1,603,941 Fixtures and equipment
1,677 1,170
1,790,591 1,790,590 Less accumulated depreciation
266,284 222,252
Real estate assets, net 1,524,307 1,568,338 Acquired real
estate leases, less accumulated amortization of $101,838 and
$69,848, respectively 138,714 183,454 Investment in
non-consolidated REITs 78,611 80,494 Cash and cash equivalents
7,519 19,623 Restricted cash 742 643 Tenant rent receivables, less
allowance for doubtful accounts of $325 and $50, respectively 4,733
5,102 Straight-line rent receivable, less allowance for doubtful
accounts of $162 and $135, respectively 47,021 42,261 Prepaid
expenses and other assets 10,292 10,506 Related party mortgage loan
receivables 93,641 99,746 Other assets: derivative asset 3,020
5,321 Office computers and furniture, net of accumulated
depreciation of $1,036 and $747, respectively 609 709 Deferred
leasing commissions, net of accumulated amortization of $16,944 and
$15,031, respectively 27,181
27,837 Total assets
$ 1,936,390 $ 2,044,034
Liabilities and Stockholders’ Equity: Liabilities: Bank note
payable $ 268,000 $ 306,500 Term loans payable 620,000 620,000
Accounts payable and accrued expenses 42,561 44,137 Accrued
compensation 3,758 2,985 Tenant security deposits 4,248 4,027 Other
liabilities: derivative liability 7,268 2,044 Acquired unfavorable
real estate leases, less accumulated amortization of $8,687 and
$6,926, respectively 10,908
14,175 Total liabilities
956,743
993,868 Commitments and contingencies Stockholders’ Equity:
Preferred stock, $.0001 par value,
20,000,000 sharesauthorized, none issued or outstanding
- -
Common stock, $.0001 par value,
180,000,000 shares authorized,100,187,405 and 100,187,405 shares
issued and outstanding, respectively
10 10 Additional paid-in capital 1,273,556 1,273,556 Accumulated
other comprehensive income (loss) (4,248 ) 3,277 Accumulated
distributions in excess of accumulated earnings
(289,671 ) (226,677 )
Total stockholders’ equity
979,647 1,050,166 Total
liabilities and stockholders’ equity $
1,936,390 $ 2,044,034
Franklin Street Properties Corp. Financial
Results
Supplementary Schedule C
Condensed Consolidated Statements of Cash
Flows
(Unaudited)
For the Year Ended December 31, (in thousands)
2014
2013 2012 Cash
flows from operating activities:
Net income $ 13,148 $ 19,827 $ 7,633 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization expense 97,916 81,267 57,500 Amortization of above
market lease 635 (365 ) 71 Gain (loss) on sale of properties, less
applicable income tax (940 ) (2,158 ) 14,826 Equity in (earnings)
losses of non-consolidated REITs 1,760 1,358 (2,033 ) Distributions
from non-consolidated REITs - - 705 Increase (decrease) in
allowance for doubtful accounts 275 (1,250 ) 65 Changes in
operating assets and liabilities: Restricted cash (99 ) (68 ) (82 )
Tenant rent receivables 94 (2,103 ) (354 ) Straight-line rents
(4,737 ) (5,782 ) (4,464 ) Lease acquisition costs (440 ) (1,146 )
(2,520 ) Prepaid expenses and other assets 700 (1,547 ) (328 )
Accounts payable, accrued expenses and other items 206 11,137 3,717
Accrued compensation 773 445 318 Tenant security deposits 222 1,538
481 Payment of deferred leasing commissions
(6,347 ) (9,125 )
(5,179 ) Net cash provided by operating activities
103,166
92,028 70,356
Cash flows from
investing activities: Property acquisitions - (454,447 )
(167,812 ) Property improvements, fixtures and equipment (18,370 )
(19,120 ) (15,824 ) Office computers and furniture (191 ) (355 )
(232 ) Acquired real estate leases - (100,143 ) (37,302 )
Investment in non-consolidated REITs - 4,858 (1 ) Distributions in
excess of earnings from non-consolidated REITs 107 108 2,105
Investment in related party mortgage loan receivable (11,170 )
(8,200 ) (74,580 ) Repayment of related party mortgage receivable
17,275 2,350 121,200 Proceeds received on sales of real estate
assets 14,192
12,301 157 Net
cash provided by (used in) investing activities
1,843 (562,648 )
(172,289 )
Cash flows from financing
activities: Distributions to stockholders (76,142 ) (69,588 )
(63,032 ) Proceeds from equity offering - 241,500 - Offering costs
- (10,818 ) - Borrowings under bank note payable 15,000 160,000
294,750 Repayments of bank note payable (53,500 ) (70,250 )
(527,000 ) Borrowing of term loan payable - 220,000 400,000
Deferred financing costs (2,471
) (1,868 ) (5,331 ) Net
cash provided by (used in) financing activities
(117,113 ) 468,976
99,387
Net decrease in cash and cash
equivalents (12,104 ) (1,644 ) (2,546 )
Cash and cash
equivalents, beginning of year
19,623 21,267
23,813
Cash and cash equivalents, end
of year $ 7,519 $
19,623 $ 21,267
Franklin Street Properties Corp. Earnings
ReleaseSupplementary Schedule DReal Estate Portfolio Summary
Information(Unaudited & Approximated)
Commercial portfolio lease expirations (1)
Total % of
Year
Square
Feet
Portfolio
2015 710,649 7.4% 2016 962,093 10.0% 2017 1,059,927 11.1% 2018
944,323 9.9% 2019 1,606,640 16.8% Thereafter (2) 4,296,425
44.8% 9,580,057 100.0%
(1) Percentages are determined based upon square footage of
expiring commercial leases.(2) Includes 688,936 square feet of
current vacancies.
(dollars & square feet in
000's) As of December 31, 2014 # of % of Square % of
State
Properties
Investment
Portfolio
Feet
Portfolio
Texas 10 $ 393,054 25.8 % 2,539 26.5 % Colorado 5 436,166
28.6 % 2,010 21.0 % Georgia 3 221,383 14.5 % 1,396 14.6 % Virginia
4 96,028 6.3 % 685 7.1 % Minnesota 2 43,373 2.9 % 628 6.6 %
Missouri 3 62,111 4.1 % 477 5.0 % North Carolina 3 63,683 4.2 % 431
4.5 % Illinois 2 46,295 3.0 % 372 3.9 % Maryland 1 52,103 3.4 % 325
3.4 % Florida 1 43,081 2.8 % 213 2.2 % Indiana 1 32,819 2.2 % 205
2.1 % California 2 20,393 1.3 % 182 1.9 % Washington 1
13,818 0.9 %
117 1.2 % 38 $ 1,524,307
100.0 % 9,580
100.0 %
Franklin Street Properties Corp. Earnings
Release
Supplementary Schedule E
Portfolio and Other Supplementary
Information
(Unaudited & Approximated)
Recurring Capital Expenditures Owned Portfolio
(in thousands) For the Three Months Ended Year ended
31-Mar-14
30-Jun-14
30-Sep-14
31-Dec-14
31-Dec-14
Tenant improvements $ 1,132 $ 1,837 $ 2,612 $ 4,244 $ 9,825
Deferred leasing costs 1,080 2,786 577 1,405 5,848 Non-investment
capex 364 1,621 700 851 3,536 $
2,576 $ 6,244 $ 3,889 $ 6,500 $ 19,209
For the Three Months Ended:
Year ended
31-Mar-13
30-Jun-13
30-Sep-13
31-Dec-13
31-Dec-13
Tenant improvements $ 1,724 $ 5,094 $ 4,594 $ 2,993 $ 14,405
Deferred leasing costs 2,812 909 3,821 1,498 9,040 Non-investment
capex 482 707 498 1,179 2,866 $
5,018 $ 6,710 $ 8,913 $ 5,670 $ 26,311
Square foot & leased percentages
December, December 31, 2014 2013 Owned portfolio of
commercial real estate Number of properties 38 39 Square feet
9,580,057 9,685,285 Leased percentage 92.8% 94.1%
Investments in non-consolidated REITs Number of properties 2 2
Square feet 1,395,780 1,395,500 Leased percentage 71.3% 64.1%
Single Asset REITs (SARs) managed Number of properties 8 12
Square feet 1,897,801 3,067,199 Leased percentage 84.7% 87.4%
Total owned, investments & managed properties Number of
properties 48 53 Square feet 12,873,638 14,147,984 Leased
percentage 89.3% 89.7%
The following table shows property information for our
investments in non-consolidated REITs:
Square
% Leased % Interest
Single Asset REIT
name
City
State
Feet
31-Dec-14
Held
FSP 303 East Wacker Drive Corp. Chicago IL 860,709 62.5% 43.7% FSP
Grand Boulevard Corp. Kansas City MO 535,071 85.5%
27.0% 1,395,780 71.3%
Franklin Street Properties Corp. Earnings
Release
Supplementary Schedule F
Percentage of Leased Space
(Unaudited & Estimated)
Third Fourth % Leased (1)
Quarter % Leased (1) Quarter as of
Average % as of Average %
Property
Name
Location
Square
Feet
30-Sep-14
Leased
(2)
31-Dec-14
Leased
(2)
1 PARK SENECA Charlotte, NC 109,674 88.4% 88.2% 92.1% 91.0%
2 HILLVIEW CENTER Milpitas, CA 36,288 100.0% 100.0% 100.0% 100.0% 3
FOREST PARK Charlotte, NC 62,212 100.0% 100.0% 100.0% 100.0% 4
CENTENNIAL Colorado Springs, CO - 97.3% 97.3%
Sold December 3,
2014 5 MEADOW POINT Chantilly, VA 138,537 92.6% 92.6% 92.6%
92.6% 6 TIMBERLAKE Chesterfield, MO 232,766 98.3% 98.3% 98.3% 98.3%
7 FEDERAL WAY Federal Way, WA 117,010 56.5% 56.5% 57.1% 57.3% 8
NORTHWEST POINT Elk Grove Village, IL 176,848 100.0% 100.0% 100.0%
100.0% 9 TIMBERLAKE EAST Chesterfield, MO 116,197 91.0% 91.0% 91.0%
91.0% 10 PARK TEN Houston, TX 157,460 80.3% 80.3% 63.1% 68.8% 11
MONTAGUE San Jose, CA 145,951 81.1% 81.1% 81.1% 81.1% 12 ADDISON
Addison, TX 293,926 95.3% 96.0% 89.6% 93.4% 13 COLLINS CROSSING
Richardson, TX 300,472 99.5% 99.5% 99.5% 99.5% 14 GREENWOOD PLAZA
Englewood, CO 196,236 100.0% 100.0% 100.0% 100.0% 15 RIVER CROSSING
Indianapolis, IN 205,059 97.6% 97.0% 100.0% 99.7% 16 LIBERTY PLAZA
Addison, TX 218,934 96.0% 96.0% 90.6% 93.2% 17 INNSBROOK Glen
Allen, VA 298,456 99.9% 99.9% 99.9% 99.9% 18 380 INTERLOCKEN
Broomfield, CO 240,185 95.8% 95.8% 95.8% 95.8% 19 BLUE LAGOON
Miami, FL 212,619 100.0% 100.0% 100.0% 100.0% 20 ELDRIDGE GREEN
Houston, TX 248,399 100.0% 100.0% 100.0% 100.0% 21 WILLOW BEND
Plano, TX 117,050 100.0% 100.0% 100.0% 100.0% 22 ONE OVERTON PARK
Atlanta, GA 387,267 98.9% 98.9% 86.3% 90.7% 23 390 INTERLOCKEN
Broomfield, CO 241,516 71.2% 70.5% 72.3% 72.0% 24 EAST BALTIMORE
Baltimore, MD 325,445 81.2% 81.2% 81.9% 81.9% 25 PARK TEN PHASE II
Houston, TX 156,746 100.0% 100.0% 100.0% 100.0% 26
LAKESIDE CROSSING I
Maryland Heights, MO 127,778 100.0% 100.0% 100.0% 100.0% 27 LOUDOUN
TECH Dulles, VA 136,658 92.0% 97.3% 92.0% 92.0% 28 4807 STONECROFT
Chantilly, VA 111,469 100.0% 100.0% 100.0% 100.0% 29 EDEN BLUFF
Eden Prairie, MN 153,028 100.0% 100.0% 100.0% 100.0% 30 121 SOUTH
EIGHTH ST Minneapolis, MN 475,012 90.8% 90.6% 91.2% 90.9% 31
EMPEROR BOULEVARD Durham, NC 259,531 100.0% 100.0% 100.0% 100.0% 32
LEGACY TENNYSON CTR Plano, TX 202,600 100.0% 100.0% 100.0% 100.0%
33 ONE LEGACY Plano, TX 214,110 100.0% 100.0% 100.0% 100.0% 34 909
DAVIS Evanston, IL 195,245 97.9% 97.9% 97.9% 97.9% 35 ONE RAVINIA
DRIVE Atlanta, GA 386,603 93.7% 93.7% 95.2% 94.7% 36 WESTCHASE I
& II Houston, TX 629,025 97.3% 97.3% 97.7% 97.7% 37 1999
BROADWAY Denver, CO 676,379 87.6% 89.6% 88.9% 88.4% 38 999
PEACHTREE Atlanta, GA 621,946 97.8% 95.4% 97.7% 97.9% 39 1001 17th
STREET Denver, CO 655,420 81.1% 82.2% 84.8% 82.3%
TOTAL WEIGHTED AVERAGE (3) 9,580,057
93.3% 93.4%
92.8% 93.0%
(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 3 months during the quarter.(3) Totals for Q3 include
Centennial, which was sold on December 3, 2014.
Franklin Street Properties Corp. Earnings
ReleaseSupplementary Schedule GLargest 20 Tenants – FSP Owned
Portfolio(Unaudited & Estimated)
The following table includes the largest 20
tenants in FSP’s owned portfolio based on leased square feet:
As of December 31, 2014 %
of
Tenant
Sq Ft
Portfolio
1 TCF National Bank 263,111 2.8% 2 Quintiles Transnational Corp
259,531 2.7% 3 CITGO Petroleum Corporation 248,399 2.6% 4
Sutherland Asbill Brennan LLP 243,839 2.5% 5 Newfield Exploration
Company 234,495 2.4% 6 US Government (a) 224,427 2.3% 7 Burger King
Corporation 212,619 2.2% 8 Denbury Onshore, LLC 202,600 2.1% 9 RGA
Reinsurance Company (b) 197,354 2.1% 10 SunTrust Bank (c) 182,888
1.9% 11 Citicorp Credit Services, Inc 176,848 1.9% 12 C.H. Robinson
Worldwide, Inc 153,028 1.6% 13 T-Mobile South, LLC dba T-Mobile
151,792 1.6% 14 Houghton Mifflin Harcourt Publishing Company
150,050 1.6% 15 Petrobras America, Inc. 144,813 1.5% 16 Murphy
Exploration & Production Company 144,677 1.5% 17 Argo Data
Resource Corporation 140,246 1.5% 18 Monsanto Company 127,778 1.3%
19 Federal National Mortgage Association 123,144 1.3% 20 Vail Corp
d/b/a Vail Resorts (d) 122,232 1.3% Total 3,703,871
38.7%
(a) Includes 180,444 and 5,090 square feet which expire in 2018
& 2016, respectively. The remaining 38,893 square feet expire
between 2015 - 2020.(b) Lease expired and tenants vacated on
December 31, 2014. As of January 1, 2015, Kaiser Foundation Health
Plan will become the 20th largest tenant with 120,979 square
feet.(c) Includes 55,388 square feet which expires October 31,
2016. The remaining 127,500 square feet expires September 30,
2021.(d ) Includes 38,293 square feet which expires March 31, 2019.
The remaining 83,939 square feet expires March 31, 2023.
Franklin Street Properties Corp. Earnings
ReleaseSupplementary Schedule HDefinition of 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 (computed in accordance with GAAP), excluding
gains (or losses) from sales of property and acquisition costs of
newly acquired properties that are not capitalized, plus
depreciation and amortization, including amortization of acquired
above and below market lease intangibles and impairment charges on
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
(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 NAREIT, may define this term in
a different manner. We have included the NAREIT FFO definition in
our 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 and cash flows from operating, investing and
financing activities in the consolidated financial statements.
For Franklin Street Properties Corp.John Demeritt,
877-686-9496
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