Attached files
| file | filename |
|---|---|
| 8-K - FSP GALLERIA NORTH CORP. - FSP GALLERIA NORTH CORP | eps3696.htm |
Exhibit
99.1
FSP Galleria North
Corp.
FSP
Galleria North Corp. (the "Company") has suspended dividends for the calendar
year 2010 and the foreseeable future due to the fact that the Company’s property
was vacated in its entirety at the end of 2009.
The
Company’s property located in Dallas, Texas, was previously 100% leased to a
single tenant, Tenet Hospitals Limited (“Tenet”). Tenet’s lease
expired on December 31, 2009. In anticipation of this vacancy and the
increasing possibility of a prolonged economic downturn, the Company’s Board of
Directors reduced the amount of the dividend for calendar year 2009 in order to
build up a larger reserve that may be allocated to fund operating expenses in
the event that the Company’s property remains vacant for an extended period of
time. The reserve may be utilized to help with the capital costs to
reposition the property from a single-tenant building to a multi-tenant
building, if needed. In addition to the amount of money reserved by
reducing the dividend in 2009, the majority of the $4.8 million original
Operating/Capital Reserve raised as part of the equity offering has not been
spent and is still available to be allocated to the cost of leasing the
Company’s property or to fund operating expenses.
The
departure of Tenet has allowed more physical work to commence at the
property. Management has hired an architect and begun the process of
repositioning the building to attract a wide variety of prospective
tenants. Management is planning to feature a large conference center
and brand new fitness center that will be highly-desirable amenities within the
building. During the fourth quarter of 2009, management successfully
led the effort to cause the property to obtain LEED Gold Certification by the
U.S. Green Building Council in the Leadership in Energy and Environmental Design
for Existing Buildings: Operations & Maintenance. A
copy of the press release that the Company previously issued on December 10,
2009 announcing this accomplishment is attached hereto.
Please
be assured that management is aggressively working with its local leasing team
to re-lease the property. The property has been available for
showings to prospective replacement tenants. Despite softening market
fundamentals there have been many inquiries from interested prospects and
multiple showings. The feedback from the prospects in regards to the
quality of the property has been encouraging, but no letters of intent or leases
have been signed thus far. However, management cannot predict how
long it will take for market conditions to recover and, therefore, is unable to
predict how long it will take to re-lease and to stabilize the
property. Once the property is re-leased and stabilized with a
longer-term, in-place rental income stream, it is management’s intention to
consider a sale of the property. Any sale of the property in the
future would be subject to a number of conditions, including a favorable sales
market environment, compliance with any SEC requirements, tax considerations,
approval by the Company’s Board of Directors and approval by a majority of the
holders of the Company’s preferred stock.
The
Company’s annual filing on Form 10-K will be submitted to the SEC within
approximately 90 days after year end, and you will be able to access the
document via the SEC’s website. However, a copy of the Annual Report
will be made available directly to you. To view Company filings with
the SEC, access the following link:
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001310157
If
the link does not work properly, go to www.sec.gov, Filings
& Forms, Search for Company Filings; Company
or fund name, ticker symbol, CIK (Central Index Key), file number, state,
country, or SIC (Standard Industrial Classification); Company
Name: type FSP Galleria (no need to type complete name, but be sure
to include FSP); click on Find Companies at bottom of page and you should be
brought to the correct location to view filings.
Please
feel free to contact your FSP Investment Executive (800-950-6288) with any
questions you may have.
|
FSP Galleria North
Corp. - Dividend Summary
|
|||
|
QUARTER
ENDING
|
DIVIDEND
PER
SHARE
|
TOTAL
DIVIDENDS
PAID
|
ANNUALIZED
YIELD*
|
|
(10/14-12/31)
|
|||
|
12/31/2004
|
$1,451
|
$1,247,860
|
6.7%
|
|
03/31/2005
|
$1,909
|
$1,641,740
|
7.6%
|
|
06/30/2005
|
$1,907
|
$1,640,020
|
7.6%
|
|
09/30/2005
|
$1,908
|
$1,640,880
|
7.6%
|
|
12/31/2005
|
$1,926
|
$1,656,360
|
7.7%
|
|
03/31/2006
|
$1,986
|
$1,707,960
|
7.9%
|
|
06/30/2006
|
$1,979
|
$1,701,940
|
7.9%
|
|
09/30/2006
|
$2,000
|
$1,720,000
|
8.0%
|
|
12/31/2006
|
$1,954
|
$1,680,440
|
7.8%
|
|
03/31/2007
|
$1,965
|
$1,689,900
|
7.9%
|
|
06/30/2007
|
$1,943
|
$1,670,980
|
7.8%
|
|
09/30/2007
|
$1,942
|
$1,670,120
|
7.7%
|
|
12/31/2007
|
$1,995
|
$1,715,700
|
7.9%
|
|
03/31/2008
|
$1,947
|
$1,674,420
|
7.8%
|
|
06/30/2008
|
$1,919
|
$1,650,340
|
7.7%
|
|
09/30/2008
|
$1,860
|
$1,599,600
|
7.4%
|
|
12/31/2008
|
$1,744
|
$1,499,840
|
7.0%
|
|
03/31/2009
|
$1,395
|
$1,199,700
|
5.6%
|
|
06/30/2009
|
$1,395
|
$1,199,700
|
5.6%
|
|
09/30/2009
|
$1,395
|
$1,199,700
|
5.6%
|
|
12/31/2009
|
-
0 -
|
-
0 -
|
-
0 -
|
*Yield
based on original offering amount of $86,000,000 and
$100,000/share
2
Forward-Looking
Statements
Statements
made in this letter that state the Company’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 letter 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. Readers are cautioned that
our forward-looking statements involve risks and uncertainty, including without
limitation, disruptions in the debt markets, economic conditions, risks of a
lessening demand for the real estate owned by us, changes in government
regulations 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. 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 letter to conform them to actual results or to
changes in our expectations that occur after such date, other than as required
by law.
3
|
PRESS
RELEASE
|
FSP
Galleria North Corp.
|
|
401
Edgewater Place · Suite 200
·
Wakefield, Massachusetts 01880-6210 · (781)
557-1300
|
|
|
Contact: Christine
Villar: 781-557-1377
|
|
FOR
IMMEDIATE RELEASE
FSP GALLERIA NORTH
CORP.ACHIEVES THE FIRST LEED® GOLD CERTIFICATION
FOR
EXISTING BUILDINGS: OPERATIONS & MAINTENANCE IN
DALLAS, TEXAS
WAKEFIELD, MA – December 10,
2009 – FSP Galleria North Corp. (the “Company”), a Delaware corporation
formed to purchase, own and operate a 16-story Class “A” office tower containing
approximately 379,518 rentable square feet of space located on approximately 4.8
acres of land in Dallas, Texas (the “Property”), announced today that the
Property has received LEED Gold
Certification by the U.S. Green Building Council (“USGBC”) in the Leadership in
Energy and Environmental Design for Existing Buildings: Operations &
Maintenance (“LEED-EB: O&M”). The Property, known as Galleria
North Tower I, is located at 13737 Noel Road, Dallas, Texas, and is the first
commercial building in Dallas to be awarded the highly-esteemed gold
certification for LEED-EB: O&M.
To
attain LEED-EB: O&M certification, a building must address five broad
categories: sustainable site maintenance, water efficiency, energy and
atmosphere, materials and resources and indoor environmental
quality. With respect to the Property, the Company improved plumbing
fixtures, providing a water efficiency of more than 30% above the LEED-EB:
O&M baseline case. The Property also saves water by employing low
water use-type plants on its grounds. Per the Energy Star Portfolio
Manager program, the Property now boasts a score of 93, meaning it is more
energy efficient than 93% of comparable office buildings
nationwide. In addition, the Property is offsetting approximately 50%
of its total energy use through the purchase of Green-e accredited renewable
energy certificates from wind and biomass energy sources. During the
Property’s performance period, 100% of disposed durable goods were recycled and
100% of all waste from facility alterations was either recycled or reused
on-site.
George
J. Carter, President of the Company stated, “We are very pleased to have
achieved this important certification, working closely with FSP Property
Management, Hines and Kirksey Architecture to satisfy the rigorous demands of
LEED. Galleria North Tower I is widely considered one of the premiere office
buildings in North Dallas, and now, being the first such property in Dallas to
obtain gold under LEED-EB: O&M adds to its appeal.”
According
to Rick Fedrizzi, President, CEO & Founding Chair of USGBC, “Buildings are a
prime example of how human systems integrate with natural
systems. Galleria North Tower I efficiently uses our natural
resources and makes an immediate, positive impact on our planet, which will
tremendously benefit future generations to come.”
FSP Property Management LLC led the
effort to obtain Gold level certification under the LEED-EB: O&M rating
system on behalf of the Company. FSP Property Management LLC, a
subsidiary of Franklin Street Properties Corp., provides asset management,
property management and property accounting services. In addition to
the Company and FSP Property Management LLC, other parties contributed to making
this the first project in Dallas, Texas to be awarded Gold level certification
under the LEED-EB: O&M rating system, including the Property’s original
developer and current local property manager, Hines, and LEED consultant,
Kirksey Architecture.
4
About FSP Galleria North Corp.
FSP
Galleria North Corp. was organized in 2004 as a Delaware corporation to
purchase, own and operate the Property. The Company acquired the
Property through a limited partnership, FSP Galleria North Limited
Partnership. All of the equity interests in FSP Galleria North
Limited Partnership are owned, directly and indirectly, by the
Company. Franklin Street Properties Corp. holds the sole share of the
Company’s common stock. Between December 2004 and August 2005, FSP
Investments LLC, a wholly-owned subsidiary of Franklin Street Properties Corp.,
completed the sale on a best efforts basis of 860 shares of preferred stock in
the Company. FSP Investments LLC sold the preferred stock in a
private placement offering to “accredited investors” within the meaning of
Regulation D under the Securities Act of 1933. The Company operates
in a manner intended to qualify as a real estate investment trust, or REIT, for
federal income tax purposes. The Company is a public reporting
company and all of its filings with the United States Securities and Exchange
Commission are available at www.sec.gov.
About
Franklin Street Properties Corp. and FSP Property Management LLC
Franklin
Street Properties Corp. (“Franklin Street”) (NYSE Amex: FSP), based in
Wakefield, Massachusetts, is focused on achieving current income and long-term
growth through investments in commercial properties. Franklin Street
operates in two business segments: real estate operations and investment
banking/investment services. The majority of Franklin Street’s
property portfolio is suburban office buildings, with select investments in
certain central business district properties. FSP Investments LLC
(member, FINRA and SIPC), a subsidiary of Franklin Street, is a real estate
investment banking firm and a registered broker/dealer. FSP
Investments LLC generates brokerage commissions, loan origination fees,
development services and other fees related to the organization of
single-purpose entities that own real estate and the private placement of equity
in those entities (“Sponsored REITs”). The Company is a Sponsored
REIT. FSP Property Management LLC, a subsidiary of Franklin Street,
provides asset management and property management services for Franklin Street’s
portfolio of properties. FSP Property Management LLC also provides
asset management, property management and property accounting services to
Sponsored REITs. FSP Property Management LLC contributes revenue to
Franklin Street from the property level fees that it receives from Sponsored
REITs. As of September 30, 2009, the amount of space being managed by
FSP Property Management LLC for both Franklin Street and Sponsored REITs was
approximately 10.1 million square feet in 44 different
properties. Franklin Street is a Maryland corporation that operates
in a manner intended to qualify as a REIT for federal income tax
purposes. To learn more about Franklin Street please visit its
website at www.franklinstreetproperties.com.
About
Hines
Hines
is a privately owned real estate firm involved in real estate investment,
development and property management worldwide. The firm’s historical
and current portfolio of projects that are underway, completed, acquired and
managed for third parties includes 1,111 properties representing more than 449
million square feet of office, residential, mixed-use, industrial, hotel,
medical and sports facilities, as well as large, master-planned communities and
developments. With offices in more than 100 cities in 17 countries,
and controlled assets valued at approximately $22.9 billion, Hines is one of the
largest real estate organizations in the world. Hines is also a world
leader in sustainable real estate strategies, with extensive experience in
LEED®, ENERGY STAR®, BREEAM in the United Kingdom, France’s Haute Qualité
Environmentale and with the German Sustainable Building
Council. Visit www.hines.com for
more information.
5
About Kirksey
Specializing
in sustainable architecture, interior design, master planning, and LEED®
services, Houston-based Kirksey designs high-performance, healthy buildings for
all of its clients. Kirksey has more than 26 million square feet of
LEED projects in its portfolio. In addition to being the 1st Gold EB
O&M in Dallas, Kirksey also achieved a number of LEED milestones throughout
Texas, including the 1st LEED EB v1.0 in Texas, its own corporate headquarters,
the 1st EB O&M Gold Certification in Texas (First City Tower), the 1st LEED
Gold CS (Core and Shell) in Houston, the 1st LEED Silver NC Certified building
in Houston, the 1st LEED Silver CI Certified Build-out in
Houston. For more information, visit www.kirksey.com.
# # #
6