Attached files
| file | filename |
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| 8-K - FSP 303 EAST WACKER DRIVE CORP. - FSP 303 East Wacker Drive Corp. | eps3800.htm |
Exhibit 99.1
FSP 303 East Wacker Drive
Corp.
FSP
303 East Wacker Drive Corp. (the "Company") has declared a dividend in the
amount of $997 per share of preferred stock, representing property operations
for the quarter ended March 31, 2010. The dividend will be payable on
May 28, 2010, and will be distributed by the Company’s transfer agent, American
Stock Transfer & Trust Co. (“AST”). NOTE: if your investment
is in a retirement account, the dividend will be sent to your custodian or plan
administrator.
The
Company owns a twenty-eight story multi-tenant office tower located in downtown
Chicago, Illinois containing approximately 859,000 square feet of office and
retail space and a 294-stall underground parking garage (the
“Property”). The Property was approximately 73% leased as of
March 31, 2010. Subsequent to quarter’s end, management executed
a lease amendment with XO Communications Services (“XO”) to expand by 3,381
square feet and to extend its lease term by eight years. XO’s lease
will expire in April 2022, and XO now leases 30,077 square feet in the concourse
level. During calendar 2010, there will be approximately 47,482
square feet of leases expiring which represent approximately 5.5% of the
Property’s rentable space. Management has been working diligently
with most of these tenants to extend their respective leases and is in the
process of finalizing approximately 39,000 square feet of short-term renewals
with four tenants. Finally, management has agreed to business terms
and is currently in the process of negotiating the final lease language
regarding a new lease for a full floor or approximately 30,000 square
feet. The prospective tenant is currently located in a different
submarket in Chicago, and management is encouraged that the East Loop and the
Company’s Property are attracting interest from larger prospects in the broader
market place. Management will continue to work on finalizing these
transactions and is hopeful to report good news in the next quarterly
update. It is important to keep in mind that leasing space in Chicago
properties is very expensive in an economic downturn. The Company has
incurred and will continue to incur significant leasing costs in an effort to
stabilize the occupancy. It is possible the Company's board of
directors could decide to reduce the amount of the dividend in the near future,
for some period of time, in order to replenish capital reserves that will be
required to pay for costs associated with current and upcoming
leasing/re-leasing efforts.
The
Property’s largest tenant is KPMG LLP (“KPMG”), which leases approximately
259,000 square feet (30%) of the Property’s rentable space through August
2012. In the first half of 2009, management reported that KPMG
notified us that it will be relocating to a different property location
following the expiration of its lease on August 31, 2012. With more
than two years remaining on KPMG’s lease, management has implemented a marketing
plan designed to locate a replacement tenant (or tenants) and will continue to
proactively hunt for prospects. Large users of space are often
looking at their options many years in advance of the desired commencement
date. The leasing team has been actively pursuing these prospects for
a late 2012 or early 2013 occupancy.
The
leasing environment in Chicago over the past six quarters has been extremely
challenging. Despite the unfavorable conditions, management was
successful in negotiating and signing over 34,000 square feet of leases during
2009. This activity represents approximately 4% of the total rentable
space in the Property and comprises both renewals and new
deals. Unfortunately, as previously reported, a few tenants that had
occupied approximately 15% of aggregate space at the Property decided to
relocate elsewhere in Chicago during the past year. None of these
recent departures came as a surprise to management as the tenants communicated
their intentions to leave because they were consolidating into other locations
or relocating to different submarkets. Please be assured that
management has been very diligent and proactive in retaining any and all
existing tenants, as well as trying to attract new tenants to the
Property. However, management’s leasing efforts are guided by its
belief that it should not compromise the potential long-term value of the
Property for short-term leasing gains on unfavorable terms as a result of
current economic conditions.
The
Company’s quarterly filing on Form 10-Q will be submitted to the SEC within
approximately 45 days after the end of the quarter, and you will be able to
access the document via the SEC’s website. To view Company filings
with the SEC, access the following link:
http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001431766
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 303 East Wacker
(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 303 East Wacker
Drive Corp. - Dividend Summary
|
|||
|
QUARTER
ENDING
|
DIVIDEND
PER
SHARE
|
TOTAL
DIVIDENDS
PAID
|
ANUALIZED
YIELD*
|
|
(1/5-3/31)
|
|||
|
03/31/2007
|
$1,340
|
$2,961,400
|
5.6%
|
|
06/30/2007
|
$1,400
|
$3,094,000
|
5.6%
|
|
09/30/2007
|
$1,400
|
$3,094,000
|
5.6%
|
|
12/31/2007
|
$1,400
|
$3,094,000
|
5.6%
|
|
03/31/2008
|
$1,400
|
$3,094,000
|
5.6%
|
|
06/30/2008
|
$1,400
|
$3,094,000
|
5.6%
|
|
09/30/2008
|
$1,400
|
$3,094,000
|
5.6%
|
|
12/31/2008
|
$1,400
|
$3,094,000
|
5.6%
|
|
03/31/2009
|
$1,400
|
$3,094,000
|
5.6%
|
|
06/30/2009
|
$1,013
|
$2,238,730
|
4.1%
|
|
09/30/2009
|
$1,013
|
$2,238,730
|
4.1%
|
|
12/31/2009
|
$1,011
|
$2,234,310
|
4.0%
|
|
03/31/2010
|
$ 997
|
$2,203,370
|
4.0%
|
| *Yield based on original offering amount of $221,000,000 and $100,000/share | |||
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.