Attached files
file | filename |
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8-K - 8-K - FRANKLIN STREET PROPERTIES CORP /MA/ | a15-21350_18k.htm |
EX-99.2 - EX-99.2 - FRANKLIN STREET PROPERTIES CORP /MA/ | a15-21350_1ex99d2.htm |
Exhibit 99.1
PRESS RELEASE |
Franklin Street Properties Corp. |
401 Edgewater Place · Suite 200 · Wakefield, Massachusetts 01880 · (781) 557-1300 · www.franklinstreetproperties.com | |
Contact: Georgia Touma (877) 686-9496 |
For Immediate Release |
Franklin Street Properties Corp. Announces
Third Quarter 2015 Results
Wakefield, MAOctober 27, 2015Franklin 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 $27.0 million or $0.27 per share for the third quarter ended September 30, 2015; and net income of $3.2 million or $0.03 per share for the third quarter ended September 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 September 30, |
|
Nine Months Ended September 30, |
| |||||||||||||||||
(in 000s except per |
|
2015 |
|
|
2014 |
|
|
Increase |
|
2015 |
|
2014 |
|
|
Increase |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Net Income |
|
$ |
3,166 |
|
|
$ |
1,567 |
|
|
$ |
1,599 |
|
$ |
19,602 |
|
$ |
8,853 |
|
|
$ |
10,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
FFO |
|
$ |
26,954 |
|
|
$ |
27,904 |
|
|
$ |
(950 |
) |
$ |
79,814 |
|
$ |
84,937 |
|
|
$ |
(5,123 |
) |
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
EPS |
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
$ |
0.20 |
|
$ |
0.09 |
|
|
$ |
0.11 |
|
FFO |
|
$ |
0.27 |
|
|
$ |
0.28 |
|
|
$ |
(0.01 |
) |
$ |
0.80 |
|
$ |
0.85 |
|
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Weighted average shares (diluted) |
|
100,187 |
|
|
100,187 |
|
|
|
|
100,187 |
|
100,187 |
|
|
|
|
Comparing results for the third quarter of 2015 to the same period in 2014, FFO decreased $0.9 million or $0.01 per share to $27.0 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 as a result of the acquisition of a property on April 8, 2015. Net Income and EPS was $3.2 million and $0.03 per share for the third quarter of 2015, respectively, compared to a net income of $1.6 million and EPS of $0.02 per share for the third quarter of 2014.
Comparing results for the nine months ended September 30, 2015 to the same period in 2014, FFO decreased $5.1 million or $0.05 per share to $79.8 million or $0.80 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 as a result of the acquisition of a property on April 8, 2015. We recorded an $11.4 million gain on the sale of three properties during the nine months ended September 30, 2015. Net Income and EPS was $19.6 million and $0.20 per share for the nine months ended September 30, 2015, respectively, compared to Net Income of $8.9 million or $0.09 per share for the nine months ended September 30, 2014.
George J. Carter, President and CEO, commented as follows:
For the third quarter of 2015, FSPs profits as represented by FFO totaled approximately $27.0 million, or $0.27 per share. Our directly owned real estate portfolio of 36 properties totaling approximately 9.6 million square feet was 90.5% leased as of September 30, 2015. We are updating our full-year 2015 FFO guidance to the range of $1.05 to $1.07 per share.
FSP continued efforts to transform its portfolio into one characterized by urban-infill assets within our top five core markets of Atlanta, Dallas, Denver, Houston and Minneapolis. To that end, we remain focused on our strategy of disposing of non-core assets throughout the portfolio with emphasis on selling suburban commodity/legacy assets both inside and outside of our five core markets. FSP is actively working on a number of potential dispositions and potential loan repayment transactions which, if consummated, would slightly expand our total potential disposition/loan repayment guidance range to between $150 and $225 million, including the approximately $57 million achieved so far this year. A number of these in-process dispositions are still subject to their respective due diligence inspection periods and/or other transaction specific uncertainties, and so execution risks remain. The timing of potential dispositions/loan repayments could spill into 2016 and we will keep the market informed as transaction clarity emerges.
Balancing the timing of potential new acquisition/development opportunities with potential dispositions continues to be challenging. Repositioning our portfolio without incurring bridge financing indebtedness, which we believe would raise our corporate risk profile above levels that we are comfortable with, continues to be a significant timing exercise in our capital recycling efforts. Currently, we have a pipeline of potential acquisitions that are receiving our full focus. Our prior potential acquisition guidance had been between $150 and $300 million and we are maintaining that guidance at this time. We will continue to manage disposition timing as best as possible to match-fund against new potential acquisitions. New acquisitions may occur prior to year-end or spill into the new-year. We will keep the market informed as transaction clarity emerges.
Additionally, we have made progress on a redevelopment plan for our CBD Minneapolis, Minnesota property located at 801 Marquette Avenue. Although subject to change, FSP currently contemplates co-developing an approximately 50-story, mixed-use tower that would include a full-service hotel, residential apartments and office space. Under the current plan, FSP would contribute the land and approximately $80 to $90 million in additional capital costs for 100% ownership of the office portion of the project, which is tentatively slated to be approximately 260,000 rentable square feet in the middle of the tower stack. FSP is working with a residential group and hotel company to further evaluate the project. Final costing and development agreements have yet to be concluded and are fully subject to change and/or cancellation. If successful in the costing and pre-development work ahead, we intend to break ground on the project sometime during the second half of 2016. Significant thought and design are being incorporated into the redevelopment of 801 Marquette Avenue in order to integrate it with and enhance the appeal of its next-door neighbor office building, FSPs tower at 121 South Eighth Street.
We remain very positive about our prospects and opportunities for the balance of the current year and 2016.
Dividend Update
On October 9, 2015, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended September 30, 2015 of $0.19 per share of common stock that will be paid on November 12, 2015 to stockholders of record on October 23, 2015.
FFO Guidance
Our full year FFO guidance for 2015 has been updated to be in the range of $1.05 to $1.07 per diluted share. This guidance (a) excludes the impact of future acquisitions, developments, 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 Companys actual results will not differ materially from the estimates set forth above.
Real Estate Update
Supplementary schedules provide property information for the Companys owned real estate portfolio and for two non-consolidated REITs in which the Company holds preferred stock interests as of September 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 Companys 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 |
|
Nine Months Ended |
| ||||||||
|
|
September 30, |
|
September 30, |
| ||||||||
(In thousands, except per share amounts) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
|
$ |
3,166 |
|
$ |
1,567 |
|
$ |
19,602 |
|
$ |
8,853 |
|
Gain on sale of assets, less applicable income tax |
|
(1 |
) |
|
|
(11,411 |
) |
|
| ||||
GAAP loss from non-consolidated REITs |
|
284 |
|
455 |
|
644 |
|
1,491 |
| ||||
FFO from non-consolidated REITs |
|
645 |
|
508 |
|
2,131 |
|
1,278 |
| ||||
Depreciation & amortization |
|
22,848 |
|
25,374 |
|
68,694 |
|
73,301 |
| ||||
NAREIT FFO |
|
26,942 |
|
27,904 |
|
79,660 |
|
84,923 |
| ||||
Acquisition costs of new properties |
|
12 |
|
|
|
154 |
|
14 |
| ||||
Funds From Operations (FFO) |
|
$ |
26,954 |
|
$ |
27,904 |
|
$ |
79,814 |
|
$ |
84,937 |
|
|
|
|
|
|
|
|
|
|
| ||||
Per Share Data |
|
|
|
|
|
|
|
|
| ||||
EPS |
|
$ |
0.03 |
|
$ |
0.02 |
|
$ |
0.20 |
|
$ |
0.09 |
|
FFO |
|
$ |
0.27 |
|
$ |
0.28 |
|
$ |
0.80 |
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average shares (basic and diluted) |
|
100,187 |
|
100,187 |
|
100,187 |
|
100,187 |
|
Todays 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 October 28, 2015 at 9:00 a.m. (ET) to discuss the third 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 Companys 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. FSPs 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 FSPs or managements 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 |
|
For the |
| ||||||||
(in thousands, except per share amounts) |
|
2015 |
|
2014 |
|
2015 |
|
2014 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Revenue: |
|
|
|
|
|
|
|
|
| ||||
Rental |
|
$ |
60,386 |
|
$ |
59,728 |
|
$ |
178,200 |
|
$ |
182,319 |
|
Related party revenue: |
|
|
|
|
|
|
|
|
| ||||
Management fees and interest income from loans |
|
1,470 |
|
1,462 |
|
4,355 |
|
4,776 |
| ||||
Other |
|
21 |
|
|
|
62 |
|
99 |
| ||||
Total revenue |
|
61,877 |
|
61,190 |
|
182,617 |
|
187,194 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Expenses: |
|
|
|
|
|
|
|
|
| ||||
Real estate operating expenses |
|
15,951 |
|
15,632 |
|
45,951 |
|
45,698 |
| ||||
Real estate taxes and insurance |
|
9,941 |
|
8,555 |
|
29,458 |
|
27,569 |
| ||||
Depreciation and amortization |
|
22,911 |
|
24,878 |
|
68,790 |
|
72,741 |
| ||||
Selling, general and administrative |
|
3,071 |
|
3,071 |
|
10,163 |
|
9,491 |
| ||||
Interest |
|
6,425 |
|
6,883 |
|
18,977 |
|
20,950 |
| ||||
Total expenses |
|
58,299 |
|
59,019 |
|
173,339 |
|
176,449 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income before interest income, equity in losses of non-consolidated REITs and taxes |
|
3,578 |
|
2,171 |
|
9,278 |
|
10,745 |
| ||||
Interest income |
|
|
|
|
|
1 |
|
2 |
| ||||
Equity in losses of non-consolidated REITs |
|
(284 |
) |
(455 |
) |
(644 |
) |
(1,491 |
) | ||||
Gain on sale of properties, less applicable income tax |
|
1 |
|
|
|
11,411 |
|
|
| ||||
Income before taxes on income |
|
3,295 |
|
1,716 |
|
20,046 |
|
9,256 |
| ||||
Taxes on income |
|
129 |
|
149 |
|
444 |
|
403 |
| ||||
Net income |
|
$ |
3,166 |
|
$ |
1,567 |
|
$ |
19,602 |
|
$ |
8,853 |
|
|
|
|
|
|
|
|
|
|
| ||||
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 |
|
$ |
0.03 |
|
$ |
0.02 |
|
$ |
0.20 |
|
$ |
0.09 |
|
Franklin Street Properties Corp. Financial Results
Supplementary Schedule B
Condensed Consolidated Balance Sheets
(Unaudited)
|
|
September 30, |
|
December 31, |
| ||
(in thousands, except share and par value amounts) |
|
2015 |
|
2014 |
| ||
Assets: |
|
|
|
|
| ||
Real estate assets: |
|
|
|
|
| ||
Land |
|
$ |
180,271 |
|
$ |
183,930 |
|
Buildings and improvements |
|
1,639,869 |
|
1,604,984 |
| ||
Fixtures and equipment |
|
1,882 |
|
1,677 |
| ||
|
|
1,822,022 |
|
1,790,591 |
| ||
Less accumulated depreciation |
|
291,331 |
|
266,284 |
| ||
Real estate assets, net |
|
1,530,691 |
|
1,524,307 |
| ||
Acquired real estate leases, less accumulated amortization of $116,711 and $101,838, respectively |
|
117,272 |
|
138,714 |
| ||
Investment in non-consolidated REITs |
|
77,853 |
|
78,611 |
| ||
Cash and cash equivalents |
|
19,100 |
|
7,519 |
| ||
Restricted cash |
|
34 |
|
742 |
| ||
Tenant rent receivables, less allowance for doubtful accounts of $200 and $325, respectively |
|
3,548 |
|
4,733 |
| ||
Straight-line rent receivable, less allowance for doubtful accounts of $50 and $162, respectively |
|
47,330 |
|
47,021 |
| ||
Prepaid expenses and other assets |
|
9,773 |
|
10,292 |
| ||
Related party mortgage loan receivables |
|
93,641 |
|
93,641 |
| ||
Other assets: derivative asset |
|
|
|
3,020 |
| ||
Office computers and furniture, net of accumulated depreciation of $1,261 and $1,036, respectively |
|
551 |
|
609 |
| ||
Deferred leasing commissions, net of accumulated amortization of $19,294 and $16,944, respectively |
|
26,587 |
|
27,181 |
| ||
Total assets |
|
$ |
1,926,380 |
|
$ |
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 |
|
42,164 |
|
42,561 |
| ||
Accrued compensation |
|
3,236 |
|
3,758 |
| ||
Tenant security deposits |
|
4,349 |
|
4,248 |
| ||
Other liabilities: derivative liability |
|
12,096 |
|
7,268 |
| ||
Acquired unfavorable real estate leases, less accumulated amortization of $10,504 and $8,687, respectively |
|
10,241 |
|
10,908 |
| ||
Total liabilities |
|
992,086 |
|
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 |
|
(12,096 |
) |
(4,248 |
) | ||
Accumulated distributions in excess of accumulated earnings |
|
(327,176 |
) |
(289,671 |
) | ||
Total stockholders equity |
|
934,294 |
|
979,647 |
| ||
Total liabilities and stockholders equity |
|
$ |
1,926,380 |
|
$ |
1,936,390 |
|
Franklin Street Properties Corp. Financial Results
Supplementary Schedule C
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
For the |
| ||||
(in thousands) |
|
2015 |
|
2014 |
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income |
|
$ |
19,602 |
|
$ |
8,853 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Depreciation and amortization expense |
|
70,340 |
|
74,237 |
| ||
Amortization of above market lease |
|
(96 |
) |
560 |
| ||
Equity in losses of non-consolidated REITs |
|
644 |
|
1,491 |
| ||
Gain on sale of properties, less applicable income tax |
|
(11,411 |
) |
|
| ||
Increase (decrease) in allowance for doubtful accounts |
|
(125 |
) |
125 |
| ||
Changes in operating assets and liabilities: |
|
|
|
|
| ||
Restricted cash |
|
708 |
|
(64 |
) | ||
Tenant rent receivables |
|
1,310 |
|
2,112 |
| ||
Straight-line rents |
|
(1,573 |
) |
(4,038 |
) | ||
Lease acquisition costs |
|
(463 |
) |
(438 |
) | ||
Prepaid expenses and other assets |
|
(997 |
) |
(106 |
) | ||
Accounts payable, accrued expenses and other items |
|
(603 |
) |
(2,133 |
) | ||
Accrued compensation |
|
(522 |
) |
(122 |
) | ||
Tenant security deposits |
|
101 |
|
304 |
| ||
Payment of deferred leasing commissions |
|
(4,254 |
) |
(4,854 |
) | ||
Net cash provided by operating activities |
|
72,661 |
|
75,927 |
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Property acquisitions |
|
(66,104 |
) |
|
| ||
Acquired real estate leases |
|
(10,604 |
) |
|
| ||
Property improvements, fixtures and equipment |
|
(15,005 |
) |
(12,403 |
) | ||
Distributions in excess of earnings from non-consolidated REITs |
|
81 |
|
81 |
| ||
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 used in investing activities |
|
(35,973 |
) |
(1,012 |
) | ||
Cash flows from financing activities: |
|
|
|
|
| ||
Distributions to stockholders |
|
(57,107 |
) |
(57,108 |
) | ||
Borrowings under bank note payable |
|
95,000 |
|
10,000 |
| ||
Repayments of bank note payable |
|
(63,000 |
) |
(31,500 |
) | ||
Net cash used in financing activities |
|
(25,107 |
) |
(78,608 |
) | ||
Net increase in cash and cash equivalents |
|
11,581 |
|
(3,693 |
) | ||
Cash and cash equivalents, beginning of year |
|
7,519 |
|
19,623 |
| ||
Cash and cash equivalents, end of period |
|
$ |
19,100 |
|
$ |
15,930 |
|
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 |
|
2015 |
|
69,019 |
|
0.7 |
% |
2016 |
|
1,005,764 |
|
10.4 |
% |
2017 |
|
1,119,778 |
|
11.6 |
% |
2018 |
|
996,420 |
|
10.3 |
% |
2019 |
|
1,473,328 |
|
15.3 |
% |
Thereafter (2) |
|
4,976,595 |
|
51.7 |
% |
|
|
9,640,904 |
|
100.0 |
% |
(1) Percentages are determined based upon total square footage.
(2) Includes 915,234 square feet of current vacancies.
(dollars & square feet in 000s)
|
|
As of September 30, 2015 |
| |||||||||
|
|
# of |
|
|
|
% of |
|
Square |
|
% of |
| |
State |
|
Properties |
|
Investment |
|
Portfolio |
|
Feet |
|
Portfolio |
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Texas |
|
9 |
|
$ |
367,987 |
|
24.0 |
% |
2,418 |
|
25.1 |
% |
Colorado |
|
5 |
|
431,870 |
|
28.2 |
% |
2,010 |
|
20.8 |
% | |
Georgia |
|
4 |
|
285,408 |
|
18.6 |
% |
1,838 |
|
19.1 |
% | |
Virginia |
|
4 |
|
94,528 |
|
6.2 |
% |
685 |
|
7.1 |
% | |
Minnesota |
|
1 |
|
29,957 |
|
2.0 |
% |
475 |
|
4.9 |
% | |
Missouri |
|
3 |
|
60,626 |
|
4.0 |
% |
478 |
|
5.0 |
% | |
North Carolina |
|
2 |
|
55,570 |
|
3.6 |
% |
322 |
|
3.3 |
% | |
Illinois |
|
2 |
|
44,909 |
|
2.9 |
% |
372 |
|
3.9 |
% | |
Maryland |
|
1 |
|
51,553 |
|
3.4 |
% |
326 |
|
3.4 |
% | |
Florida |
|
1 |
|
42,266 |
|
2.8 |
% |
213 |
|
2.2 |
% | |
Indiana |
|
1 |
|
31,890 |
|
2.1 |
% |
205 |
|
2.1 |
% | |
California |
|
2 |
|
20,560 |
|
1.3 |
% |
182 |
|
1.9 |
% | |
Washington |
|
1 |
|
13,567 |
|
0.9 |
% |
117 |
|
1.2 |
% | |
|
|
36 |
|
$ |
1,530,691 |
|
100.0 |
% |
9,641 |
|
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 Nine |
|
|
| ||||
|
|
For the Three Months Ended |
|
Months Ended |
|
|
| ||||||||
(in thousands) |
|
31-Mar-15 |
|
30-Jun-15 |
|
30-Sep-15 |
|
30-Sep-15 |
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
|
| ||||
Tenant improvements |
|
$ |
2,936 |
|
$ |
3,420 |
|
$ |
1,794 |
|
$ |
8,150 |
|
|
|
Deferred leasing costs |
|
830 |
|
1,539 |
|
1,490 |
|
3,859 |
|
|
| ||||
Non-investment capex |
|
643 |
|
1,418 |
|
1,090 |
|
3,151 |
|
|
| ||||
|
|
$ |
4,409 |
|
$ |
6,377 |
|
$ |
4,374 |
|
$ |
15,160 |
|
|
|
|
|
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
|
|
September 30, |
|
December 31, |
|
|
|
2015 |
|
2014 |
|
|
|
|
|
|
|
Owned portfolio of commercial real estate |
|
|
|
|
|
Number of properties |
|
36 |
|
38 |
|
Square feet |
|
9,640,904 |
|
9,580,057 |
|
Leased percentage |
|
90.5 |
% |
92.8 |
% |
|
|
|
|
|
|
Investments in non-consolidated REITs |
|
|
|
|
|
Number of properties |
|
2 |
|
2 |
|
Square feet |
|
1,396,071 |
|
1,395,780 |
|
Leased percentage |
|
71.2 |
% |
71.3 |
% |
|
|
|
|
|
|
Single Asset REITs (SARs) managed |
|
|
|
|
|
Number of properties |
|
7 |
|
8 |
|
Square feet |
|
1,487,026 |
|
1,897,801 |
|
Leased percentage |
|
77.0 |
% |
84.7 |
% |
|
|
|
|
|
|
Total owned, investments & managed properties |
|
|
|
|
|
Number of properties |
|
45 |
|
48 |
|
Square feet |
|
12,524,001 |
|
12,873,638 |
|
Leased percentage |
|
86.8 |
% |
89.3 |
% |
The following table shows property information for our investments in non-consolidated REITs:
|
|
|
|
|
|
Square |
|
% Leased |
|
% Interest |
|
Single Asset REIT name |
|
City |
|
State |
|
Feet |
|
30-Sep-15 |
|
Held |
|
FSP 303 East Wacker Drive Corp. |
|
Chicago |
|
IL |
|
861,000 |
|
60.6 |
% |
43.7 |
% |
FSP Grand Boulevard Corp. |
|
Kansas City |
|
MO |
|
535,071 |
|
88.4 |
% |
27.0 |
% |
|
|
|
|
|
|
1,396,071 |
|
71.2 |
% |
|
|
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule F
Percentage of Leased Space
(Unaudited & Estimated)
|
|
|
|
|
|
|
|
|
|
Second |
|
|
|
Third |
|
|
|
|
|
|
|
|
|
% Leased (1) |
|
Quarter |
|
% Leased (1) |
|
Quarter |
|
|
|
|
|
|
|
|
|
as of |
|
Average % |
|
as of |
|
Average % |
|
|
|
Property Name |
|
Location |
|
Square Feet |
|
30-Jun-15 |
|
Leased (2) |
|
30-Sep-15 |
|
Leased (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
HILLVIEW CENTER |
|
Milpitas, CA |
|
36,288 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
2 |
|
FOREST PARK |
|
Charlotte, NC |
|
62,212 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
3 |
|
MEADOW POINT |
|
Chantilly, VA |
|
138,537 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
4 |
|
TIMBERLAKE |
|
Chesterfield, MO |
|
234,023 |
|
93.8 |
% |
60.4 |
% |
93.8 |
% |
93.8 |
% |
5 |
|
FEDERAL WAY |
|
Federal Way, WA |
|
117,010 |
|
58.9 |
% |
58.9 |
% |
58.9 |
% |
58.9 |
% |
6 |
|
NORTHWEST POINT |
|
Elk Grove Village, IL |
|
176,848 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
7 |
|
TIMBERLAKE EAST |
|
Chesterfield, MO |
|
116,197 |
|
43.7 |
% |
43.5 |
% |
43.7 |
% |
43.7 |
% |
8 |
|
PARK TEN |
|
Houston, TX |
|
157,460 |
|
63.1 |
% |
63.1 |
% |
63.1 |
% |
63.1 |
% |
9 |
|
MONTAGUE |
|
San Jose, CA |
|
145,951 |
|
81.1 |
% |
81.1 |
% |
81.1 |
% |
81.1 |
% |
10 |
|
ADDISON |
|
Addison, TX |
|
290,041 |
|
91.6 |
% |
88.6 |
% |
93.4 |
% |
92.8 |
% |
11 |
|
COLLINS CROSSING |
|
Richardson, TX |
|
300,887 |
|
100.0 |
% |
99.7 |
% |
100.0 |
% |
100.0 |
% |
12 |
|
GREENWOOD PLAZA |
|
Englewood, CO |
|
196,236 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
13 |
|
RIVER CROSSING |
|
Indianapolis, IN |
|
205,059 |
|
90.6 |
% |
93.7 |
% |
90.6 |
% |
90.6 |
% |
14 |
|
LIBERTY PLAZA |
|
Addison, TX |
|
218,934 |
|
84.2 |
% |
86.3 |
% |
82.5 |
% |
82.5 |
% |
15 |
|
INNSBROOK |
|
Glen Allen, VA |
|
298,456 |
|
99.9 |
% |
99.9 |
% |
99.9 |
% |
99.9 |
% |
16 |
|
380 INTERLOCKEN |
|
Broomfield, CO |
|
240,185 |
|
97.1 |
% |
96.7 |
% |
97.1 |
% |
97.1 |
% |
17 |
|
BLUE LAGOON |
|
Miami, FLA |
|
212,619 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
18 |
|
ELDRIDGE GREEN |
|
Houston, TX |
|
248,399 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
19 |
|
ONE OVERTON PARK |
|
Atlanta, GA |
|
387,267 |
|
84.5 |
% |
83.8 |
% |
85.0 |
% |
84.5 |
% |
20 |
|
390 INTERLOCKEN |
|
Broomfield, CO |
|
241,516 |
|
72.3 |
% |
72.3 |
% |
85.3 |
% |
81.0 |
% |
21 |
|
EAST BALTIMORE |
|
Baltimore, MD |
|
325,445 |
|
81.3 |
% |
81.3 |
% |
85.4 |
% |
84.7 |
% |
22 |
|
PARK TEN PHASE II |
|
Houston, TX |
|
156,746 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
23 |
|
LAKESIDE CROSSING I |
|
Maryland Heights, MO |
|
127,778 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
24 |
|
LOUDOUN TECH |
|
Dulles, VA |
|
136,658 |
|
92.0 |
% |
92.0 |
% |
92.0 |
% |
92.0 |
% |
25 |
|
4807 STONECROFT |
|
Chantilly, VA |
|
111,469 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
26 |
|
121 SOUTH EIGHTH ST |
|
Minneapolis, MN |
|
475,694 |
|
90.2 |
% |
90.2 |
% |
90.8 |
% |
90.1 |
% |
27 |
|
EMPEROR BOULEVARD |
|
Durham, NC |
|
259,531 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
28 |
|
LEGACY TENNYSON CTR |
|
Plano, TX |
|
202,600 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
29 |
|
ONE LEGACY |
|
Plano, TX |
|
214,110 |
|
100.0 |
% |
100.0 |
% |
100.0 |
% |
100.0 |
% |
30 |
|
909 DAVIS |
|
Evanston, IL |
|
195,245 |
|
100.0 |
% |
99.7 |
% |
100.0 |
% |
100.0 |
% |
31 |
|
ONE RAVINIA DRIVE |
|
Atlanta, GA |
|
386,603 |
|
95.2 |
% |
95.2 |
% |
94.8 |
% |
94.8 |
% |
32 |
|
TWO RAVINIA |
|
Atlanta, GA |
|
442,130 |
|
77.5 |
% |
77.5 |
% |
77.4 |
% |
76.9 |
% |
33 |
|
WESTCHASE I & II |
|
Houston, TX |
|
629,025 |
|
95.9 |
% |
95.9 |
% |
90.2 |
% |
90.2 |
% |
34 |
|
1999 BROADWAY |
|
Denver, CO |
|
676,379 |
|
86.2 |
% |
86.7 |
% |
82.5 |
% |
85.1 |
% |
35 |
|
999 PEACHTREE |
|
Atlanta, GA |
|
621,946 |
|
95.1 |
% |
96.0 |
% |
94.7 |
% |
94.7 |
% |
36 |
|
1001 17th STREET |
|
Denver, CO |
|
655,420 |
|
86.3 |
% |
86.5 |
% |
86.3 |
% |
86.3 |
% |
|
|
TOTAL WEIGHTED AVERAGE |
|
|
|
9,640,904 |
|
90.6 |
% |
89.9 |
% |
90.5 |
% |
90.5 |
% |
(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.
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule G
Largest 20 Tenants FSP Owned Portfolio
(Unaudited & Estimated)
The following table includes the largest 20 tenants in FSPs owned portfolio based on total square feet:
|
|
As of September 30, 2015 |
|
|
|
|
|
|
|
|
|
|
|
% of |
|
|
|
Tenant |
|
Sq Ft |
|
Portfolio |
|
1 |
|
TCF National Bank |
|
263,111 |
|
2.7 |
% |
2 |
|
Quintiles Transnational Corp |
|
259,531 |
|
2.7 |
% |
3 |
|
CITGO Petroleum Corporation |
|
248,399 |
|
2.6 |
% |
4 |
|
Newfield Exploration Company |
|
234,495 |
|
2.4 |
% |
5 |
|
US Government |
|
223,433 |
|
2.3 |
% |
6 |
|
Sutherland Asbill Brennan LLP |
|
222,422 |
|
2.3 |
% |
7 |
|
Burger King Corporation |
|
212,619 |
|
2.2 |
% |
8 |
|
Denbury Onshore, LLC |
|
202,600 |
|
2.1 |
% |
9 |
|
SunTrust Bank |
|
182,888 |
|
1.9 |
% |
10 |
|
Citicorp Credit Services, Inc |
|
176,848 |
|
1.8 |
% |
11 |
|
T-Mobile South, LLC dba T-Mobile |
|
151,792 |
|
1.6 |
% |
12 |
|
Houghton Mifflin Harcourt Publishing Company |
|
150,050 |
|
1.6 |
% |
13 |
|
Petrobras America, Inc. |
|
144,813 |
|
1.5 |
% |
14 |
|
Murphy Exploration & Production Company |
|
144,677 |
|
1.5 |
% |
15 |
|
Argo Data Resource Corporation |
|
140,246 |
|
1.5 |
% |
16 |
|
Monsanto Company |
|
127,778 |
|
1.3 |
% |
17 |
|
Federal National Mortgage Association |
|
123,144 |
|
1.3 |
% |
18 |
|
Vail Corp d/b/a Vail Resorts |
|
122,232 |
|
1.3 |
% |
19 |
|
Kaiser Foundation Health Plan |
|
120,979 |
|
1.3 |
% |
20 |
|
Centene Management Company, LLC |
|
117,618 |
|
1.2 |
% |
|
|
Total |
|
3,569,675 |
|
37.1 |
% |
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule H
Definition 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 Companys financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Companys liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Companys 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.