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 $27.2 million or
$0.27 per share for the second quarter ended June 30, 2015; and net
income of $3.9 million or $0.04 per share for the second quarter
ended June 30, 2015.
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 June 30,
Six Months Ended June 30, (in 000's except per share data)
2015
2014
Increase(Decrease)
2015
2014
Increase(Decrease)
Net Income $ 3,903 $ 3,713 $ 190 $
16,436 $ 7,286 $ 9,150 FFO $
27,188 $ 28,254 $ (1,066 ) $ 52,860 $ 57,033
$ (4,173 ) Per Share Data: EPS $ 0.04 $ 0.04 $ 0.00 $
0.16 $ 0.07 $ 0.09 FFO $ 0.27 $ 0.28 $ (0.01 ) $ 0.53 $ 0.57 $
(0.04 ) Weighted average shares (diluted) 100,187
100,187 - 100,187
100,187 -
Comparing results for the second quarter of 2015 to the same
period in 2014, FFO decreased $1.1 million or $0.01 per share to
$27.2 million or $0.27 per share in 2015. The FFO decrease was
primarily from lower property income as a result of asset sales,
loan repayments achieved in the last twelve months and lower
occupancy, which was partially offset by the acquisition of a
property on April 8, 2015. We recorded a $0.9 million gain on the
sale of a property in the second quarter of 2015. Net Income and
EPS was $3.9 million or $0.04 per share for the second quarter of
2015 compared to a net income of $3.7 million or $0.04 per share
for the second quarter of 2014.
Comparing results for the six months ended June 30, 2015 to the
same period in 2014, FFO decreased $4.2 million or $0.04 per share
to $52.9 million or $0.53 per share. The FFO decrease was primarily
from lower property income as a result of asset sales and loan
repayments achieved in the last twelve months and from lower
occupancy, which was partially offset by the acquisition of a
property on April 8, 2015. We recorded a $11.4 million gain on the
sale of three properties during the six months ended June 30, 2015.
Net Income and EPS was $16.4 million or $0.16 per share for the six
months ended June 30, 2015 compared to net income of $7.3 million
or $0.07 per share for the six months ended June 30, 2014.
George J. Carter, President and CEO, commented as
follows:
“For the second quarter of 2015, FSP’s profits as represented by
FFO totaled approximately $27.2 million, or $0.27 per share. Our
directly owned real estate portfolio of 36 properties totaling
approximately 9.6 million square feet was 90.6% leased as of June
30, 2015. We are updating our full-year 2015 FFO guidance to the
range of $1.04 to $1.08 per share.
During the first half of 2015, we continued to lease vacant
space, totaling approximately 547,000 square feet, in our property
portfolio. The largest lease completed occurred on June 30, 2015 at
our “Timberlake” property in Chesterfield, Missouri for
approximately 117,618 square feet to Centene Management Company,
LLC. The lease is guaranteed by Centene Corporation. This lease
brings the entire three building Timberlake office complex to the
77.2% leased level. However, our overall portfolio leased
percentage remained relatively unchanged at approximately 90.6%,
primarily because of our $78 million purchase during the quarter of
the 442,130 square foot “Two Ravinia” office property in Atlanta,
Georgia, which is an approximately 80% leased value-add
opportunity. Also, on May 13, 2015, we completed the disposition of
a property known as Park Seneca, a 109,699 square foot suburban
office property located in Charlotte, North Carolina, for $8.2
million. A total gain of $0.9 million was realized as a result of
the sale. Park Seneca had been owned by FSP or an FSP affiliate
since 1997.
We continue to actively pursue further potential dispositions of
other suburban office assets that we believe are no longer core to
our long-term strategy of acquiring larger, multi-tenant, urban
in-fill, CBD or town-center office properties. We believe selective
acquisitions, such as Two Ravinia located in the Central Perimeter
submarket of Atlanta, could provide shareholders with better
risk/reward adjusted returns over an extended slow growth period in
the U.S. business cycle. Potential target acquisition opportunities
are primarily being pursued in our five core markets of Atlanta,
Dallas, Denver, Houston and Minneapolis. Along with our existing
property portfolio’s ongoing leasing activity, we believe the
results, size, timing and execution of our current capital
recycling efforts could meaningfully affect value creation and
results for full year 2015 and beyond.
We remain very positive about our prospects and
opportunities.”
Dividend Update
On July 10, 2015, the Company announced that its Board of
Directors declared a regular quarterly dividend for the three
months ended June 30, 2015 of $0.19 per share of common stock that
will be paid on August 13, 2015 to stockholders of record on July
24, 2015.
FFO Guidance
Our full year FFO guidance for 2015 has been updated to be in
the range of $1.04 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
June 30, 2015. 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 EndedJune 30,
Six Months EndedJune 30,
(In thousands, except per share amounts)
2015
2014
2015
2014
Net income $ 3,903 $ 3,713 $ 16,436 $ 7,286 Gain on sale of
assets, less applicable income tax (948 ) - (11,410 ) - GAAP loss
from non-consolidated REITs 38 552 360 1,036 FFO from
non-consolidated REITs 885 351 1,486 770 Depreciation &
amortization 23,168 23,638
45,846 47,927 NAREIT FFO 27,046 28,254 52,718
57,019 Acquisition costs of new properties 142
- 142 14 Funds From Operations
(FFO) $ 27,188 $ 28,254 $ 52,860 $
57,033 Per Share Data EPS $ 0.04 $ 0.04 $ 0.16 $ 0.07 FFO $
0.27 $ 0.28 $ 0.53 $ 0.57 Weighted average shares (basic and
diluted) 100,187 100,187 100,187
100,187
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 July 29, 2015 at 10:00 a.m.
(ET) to discuss the second quarter 2015 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 the
Three Months Ended
June 30,
For the
Six Months Ended
June 30,
(in thousands, except per share amounts)
2015 2014
2015 2014
Revenue: Rental $ 58,801 $ 60,994 $ 117,814 $ 122,591 Related party
revenue: Management fees and interest income from loans 1,412 1,671
2,885 3,314 Other 20 76
41 99 Total
revenue 60,233 62,741
120,740 126,004
Expenses: Real estate operating expenses 14,644 14,995
30,000 30,066 Real estate taxes and insurance 9,469 9,763 19,517
19,014 Depreciation and amortization 23,207 23,563 45,879 47,863
Selling, general and administrative 3,401 3,148 7,092 6,420
Interest 6,365 6,891
12,552 14,067
Total expenses 57,086
58,360 115,040
117,430 Income before interest income, equity in
losses of non-consolidated REITs and taxes 3,147 4,381 5,700 8,574
Interest income - 1 1 2 Equity in losses of non-consolidated REITs
(38 ) (552 ) (360 ) (1,036 ) Gain on sale of properties, less
applicable income tax 948
- 11,410 -
Income before taxes on income 4,057 3,830 16,751 7,540 Taxes on
income 154 117
315 254 Net income
$ 3,903 $ 3,713 $ 16,436
$ 7,286 Weighted average number of
shares outstanding, basic and diluted 100,187
100,187 100,187
100,187 Earnings per share, basic and
diluted: Net income per share, basic and diluted $
0.04 $ 0.04 $ 0.16 $ 0.07
Franklin Street Properties Corp. Financial
Results
Supplementary Schedule B
Condensed Consolidated Balance Sheets
(Unaudited)
June 30,2015
December 31,2014
(in thousands, except share and par value amounts)
Assets: Real estate assets: Land $ 180,271 $
183,930 Buildings and improvements 1,636,444 1,604,984 Fixtures and
equipment 1,800
1,677 1,818,515 1,790,591 Less accumulated depreciation
279,172 266,284 Real
estate assets, net 1,539,343 1,524,307 Acquired real estate leases,
less accumulated amortization of $110,884 and $101,838,
respectively 126,926 138,714 Investment in non-consolidated REITs
78,164 78,611 Cash and cash equivalents 15,841 7,519 Restricted
cash 48 742 Tenant rent receivables, less allowance for doubtful
accounts of $250 and $325, respectively 2,886 4,733 Straight-line
rent receivable, less allowance for doubtful accounts of $50 and
$162, respectively 46,168 47,021 Prepaid expenses and other assets
9,096 10,292 Related party mortgage loan receivables 93,641 93,641
Other assets: derivative asset 918 3,020 Office computers and
furniture, net of accumulated depreciation of $1,183 and $1,036,
respectively 562 609 Deferred leasing commissions, net of
accumulated amortization of $18,386 and $16,944, respectively
26,508 27,181
Total assets $ 1,940,101 $
1,936,390 Liabilities and Stockholders’ Equity:
Liabilities: Bank note payable $ 300,000 $ 268,000 Term loans
payable 620,000 620,000 Accounts payable and accrued expenses
39,199 42,561 Accrued compensation 2,327 3,758 Tenant security
deposits 4,315 4,248 Other liabilities: derivative liability 7,632
7,268 Acquired unfavorable real estate leases, less accumulated
amortization of $9,779 and $8,687, respectively
11,082 10,908 Total liabilities
984,555 956,743
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,
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 loss (6,714 ) (4,248 ) Accumulated
distributions in excess of accumulated earnings
(311,306 ) (289,671 ) Total stockholders’ equity
955,546 979,647
Total liabilities and stockholders’
equity
$ 1,940,101 $ 1,936,390
Franklin Street Properties Corp. Financial
Results
Supplementary Schedule C
Condensed Consolidated Statements of Cash
Flows
(Unaudited)
For the
Six Months Ended
June 30,
(in thousands)
2015
2014 Cash flows from operating activities:
Net income $ 16,436 $ 7,286 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization expense 46,913 48,854 Amortization of above market
lease (32 ) 63 Equity in losses of non-consolidated REITs 360 1,036
Gain on sale of properties, less applicable income tax (11,410 ) -
Increase (decrease) in allowance for doubtful accounts (75 ) 125
Changes in operating assets and liabilities: Restricted cash 694
(85 ) Tenant rent receivables 1,922 2,110 Straight-line rents (643
) (3,323 ) Lease acquisition costs (231 ) (437 ) Prepaid expenses
and other assets 196 503 Accounts payable, accrued expenses and
other items (4,306 ) (8,405 ) Accrued compensation (1,431 ) (933 )
Tenant security deposits 66 232 Payment of deferred leasing
commissions (2,737 )
(3,908 ) Net cash provided by operating activities
45,722 43,118
Cash flows from investing activities: Property
acquisitions (66,104 ) - Acquired real estate leases (10,604 ) -
Property improvements, fixtures and equipment (10,333 ) (7,578 )
Distributions in excess of earnings from non-consolidated REITs 54
54 Repayment of related party mortgage loan receivable - 13,880
Investment in related party mortgage loan receivable - (2,570 )
Proceeds received on sales of real estate assets
55,659 - Net cash
provided by (used in) investing activities
(31,328 ) 3,786
Cash flows
from financing activities: Distributions to stockholders
(38,072 ) (38,072 ) Borrowings under bank note payable 95,000
10,000 Repayments of bank note payable
(63,000 ) (20,000 ) Net cash used in financing
activities (6,072 )
(48,072 )
Net increase in cash and cash equivalents
8,322 (1,168 )
Cash and cash equivalents, beginning of year
7,519
19,623
Cash and cash equivalents, end of period
$ 15,841 $ 18,455
Franklin Street Properties Corp. Earnings
Release
Supplementary Schedule D
Real Estate Portfolio Summary
Information
(Unaudited & Approximated)
Commercial portfolio lease
expirations (1) Total
Square
Feet
% ofPortfolio
Year
2015 218,762 2.3 %
2016 1,084,573 11.3 %
2017 1,122,704 11.6 %
2018 956,527 9.9 %
2019 1,485,457 15.4 %
Thereafter (2)
4,771,717 49.5 %
9,639,740 100.0 %
(1) Percentages are determined based upon square footage of
expiring commercial leases.
(2) Includes 902,447 square feet of current vacancies.
(dollars & square feet in
000's) As of June 30, 2015
# ofProperties
Investment
% ofPortfolio
SquareFeet
% ofPortfolio
State
Texas 9 $ 370,346 24.1 % 2,418 25.1 % Colorado 5 433,687
28.2 % 2,010 20.8 % Georgia 4 286,384 18.6 % 1,838 19.1 % Virginia
4 95,585 6.2 % 685 7.1 % Minnesota 1 29,852 1.9 % 475 4.9 %
Missouri 3 61,107 4.0 % 478 4.9 % North Carolina 2 55,953 3.6 % 322
3.4 % Illinois 2 45,371 2.9 % 372 3.9 % Maryland 1 52,023 3.4 % 325
3.4 % Florida 1 42,461 2.8 % 213 2.2 % Indiana 1 32,193 2.1 % 205
2.1 % California 2 20,671 1.3 % 182 1.9 % Washington 1
13,710 0.9 % 117 1.2 % 36 $ 1,539,343
100.0 % 9,640 100.0 %
Franklin Street Properties Corp. Earnings
Release
Supplementary Schedule E
Portfolio and Other Supplementary
Information
(Unaudited & Approximated)
Recurring
Capital Expenditures Owned Portfolio
For the SixMonths Ended
(in thousands) For the Three Months Ended
31-Mar-15
30-Jun-15
30-Jun-15
Tenant improvements $ 2,936 $ 3,420 $ 6,356 Deferred leasing
costs 830 1,539 2,369 Non-investment capex 643 1,418
2,061 $ 4,409 $ 6,377 $ 10,786 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
Square foot &
leased percentages
June 30,2015
December 31,2014
Owned portfolio of commercial real estate Number of
properties 36 38 Square feet 9,639,740 9,580,057 Leased percentage
90.6 % 92.8 % Investments in non-consolidated REITs Number
of properties 2 2 Square feet 1,396,071 1,395,780 Leased percentage
69.7 % 71.3 % Single Asset REITs (SARs) managed Number of
properties 7 8 Square feet 1,487,026 1,897,801 Leased percentage
73.5 % 84.7 % Total owned, investments & managed
properties Number of properties 45 48 Square feet 12,522,837
12,873,638 Leased percentage 86.3 % 89.3 %
The following table shows property information for our
investments in non-consolidated REITs:
State
Square
Feet
% Leased
30-Jun-15
% Interest
Held
Single Asset REIT
name
City
FSP 303 East Wacker Drive Corp. Chicago IL 861,000 59.0% 43.7%
FSP Grand Boulevard Corp. Kansas City MO 535,071 86.9% 27.0%
1,396,071 69.7%
Franklin Street Properties Corp. Earnings
Release
Supplementary Schedule F
Percentage of Leased Space
(Unaudited & Estimated)
First Second %
Leased (1) Quarter % Leased (1) Quarter
as of Average % as of Average %
Property
Name
Location
Square
Feet
31-Mar-15
Leased
(2)
30-Jun-15
Leased
(2)
1 PARK SENECA Charlotte, NC - 91.9% 90.4%
Sold May 13, 2015
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
MEADOW POINT Chantilly, VA 138,537 92.6% 92.6% 100.0% 100.0% 5
TIMBERLAKE Chesterfield, MO 234,023 43.8% 43.8% 93.8% 60.4% 6
FEDERAL WAY Federal Way, WA 117,010 57.1% 57.1% 58.9% 58.9% 7
NORTHWEST POINT Elk Grove Village, IL 176,848 100.0% 100.0% 100.0%
100.0% 8 TIMBERLAKE EAST Chesterfield, MO 116,197 43.1% 35.8% 43.7%
43.5% 9 PARK TEN Houston, TX 157,460 63.1% 63.1% 63.1% 63.1% 10
MONTAGUE San Jose, CA 145,951 81.1% 81.1% 81.1% 81.1% 11 ADDISON
Addison, TX 289,974 86.2% 88.5% 91.6% 88.6% 12 COLLINS CROSSING
Richardson, TX 300,472 99.5% 99.5% 100.0% 99.7% 13 GREENWOOD PLAZA
Englewood, CO 196,236 100.0% 100.0% 100.0% 100.0% 14 RIVER CROSSING
Indianapolis, IN 205,059 100.0% 100.0% 90.6% 93.7% 15 LIBERTY PLAZA
Addison, TX 218,934 90.7% 90.5% 84.2% 86.3% 16 INNSBROOK Glen
Allen, VA 298,456 99.9% 99.9% 99.9% 99.9% 17 380 INTERLOCKEN
Broomfield, CO 240,185 95.8% 95.8% 97.1% 96.7% 18 BLUE LAGOON
Miami, FLA 212,619 100.0% 100.0% 100.0% 100.0% 19 ELDRIDGE GREEN
Houston, TX 248,399 100.0% 100.0% 100.0% 100.0% 20 ONE OVERTON PARK
Atlanta, GA 387,267 84.4% 84.4% 84.5% 83.8% 21 390 INTERLOCKEN
Broomfield, CO 241,516 72.3% 72.3% 72.3% 72.3% 22 EAST BALTIMORE
Baltimore, MD 325,445 81.3% 81.3% 81.3% 81.3% 23 PARK TEN PHASE II
Houston, TX 156,746 100.0% 100.0% 100.0% 100.0% 24 LAKESIDE
CROSSING I Maryland Heights, MO 127,778 100.0% 100.0% 100.0% 100.0%
25 LOUDOUN TECH Dulles, VA 136,658 92.0% 92.0% 92.0% 92.0% 26 4807
STONECROFT Chantilly, VA 111,469 100.0% 100.0% 100.0% 100.0% 27 121
SOUTH EIGHTH ST Minneapolis, MN 475,012 90.2% 90.6% 90.2% 90.2% 28
EMPEROR BOULEVARD Durham, NC 259,531 100.0% 100.0% 100.0% 100.0% 29
LEGACY TENNYSON CTR Plano, TX 202,600 100.0% 100.0% 100.0% 100.0%
30 ONE LEGACY Plano, TX 214,110 100.0% 100.0% 100.0% 100.0% 31 909
DAVIS Evanston, IL 195,245 97.9% 97.9% 100.0% 99.7% 32 ONE RAVINIA
DRIVE Atlanta, GA 386,603 95.2% 95.2% 95.2% 95.2% 33 TWO
RAVINIA Atlanta, GA 442,130
Purchased April 8, 2015 77.5%
77.5% 34 WESTCHASE I & II Houston, TX 629,025 97.1% 97.1% 95.9%
95.9% 35 1999 BROADWAY Denver, CO 676,379 87.7% 88.0% 86.2% 86.7%
36 999 PEACHTREE Atlanta, GA 621,946 98.2% 97.8% 95.1%
96.0%
37 1001 17th STREET Denver, CO 655,420 86.1% 85.7%
86.3% 86.5%
TOTAL WEIGHTED AVERAGE (3)
9,639,740 90.4% 90.4%
90.6% 89.9% (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) Average lease totals include assets sold during the
year.
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 June 30, 2015 % of
Tenant
Sq Ft
Portfolio
1 TCF National Bank 263,111 3.0 % 2 Quintiles Transnational Corp
259,531 3.0 % 3 CITGO Petroleum Corporation 248,399 2.8 % 4
Newfield Exploration Company 234,495 2.7 % 5 US Government (a)
223,433 2.6 % 6 Sutherland Asbill Brennan LLP 222,422 2.5 % 7
Burger King Corporation 212,619 2.4 % 8 Denbury Onshore, LLC (b)
202,600 2.3 % 9 SunTrust Bank (c) 182,888 2.1 % 10 Citicorp Credit
Services, Inc 176,848 2.0 % 11 T-Mobile South, LLC dba T-Mobile
151,792 1.7 % 12 Houghton Mifflin Harcourt Publishing Company
150,050 1.7 % 13 Petrobras America, Inc. 144,813 1.7 % 14 Murphy
Exploration & Production Company 144,677 1.7 % 15 Argo Data
Resource Corporation 140,246 1.6 % 16 Monsanto Company 127,778 1.5
% 17 Federal National Mortgage Association 123,144 1.4 % 18 Vail
Corp d/b/a Vail Resorts (d) 122,232 1.4 % 19 Kaiser Foundation
Health Plan 120,979 1.4 % 20 Centene Management Company, LLC (e)
117,618 1.3 % Total 3,569,675 40.9 % (a)
Includes 180,444 and 27,398 square feet which expire in 2018 &
2017, respectively. The remaining 15,591 square feet expire between
2016 - 2020. (b) Includes 102,600 square feet which expire 7/31/16
and 100,000 square feet that expires 7/31/19. (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. (e) The lease was executed June 30, 2015
and rent has not commenced.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20150728006788/en/
Franklin Street Properties Corp.Georgia Touma,
877-686-9496
Franklin Street Properties (AMEX:FSP)
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