WAKEFIELD, Mass.--(BUSINESS WIRE)--
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 $28.8 million or $0.29 per share for the
first quarter ended March 31, 2014. Net income was $3.6 million or $0.04
per share for the first quarter ended March 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 March 31,
|
|
(in 000's except per
| | | | | | | |
Increase
|
|
share data)
| | | |
2014
|
|
2013
|
|
(Decrease)
|
| | | | | | | |
|
|
Net Income
| | | |
$
|
3,573
|
|
$
|
4,401
|
|
$
|
(828
|
)
|
| | | | | | | |
|
|
FFO
| | | |
$
|
28,779
|
|
$
|
21,237
|
|
$
|
7,542
|
|
|
Per Share Data:
| | | | | | | | |
|
EPS
| | | |
$
|
0.04
| |
$
|
0.05
| |
$
|
(0.01
|
)
|
|
FFO
| | | |
$
|
0.29
| |
$
|
0.26
| |
$
|
0.03
| |
| | | | | | | |
|
|
Weighted average
| | | | | | | | |
|
shares (diluted)
| | | |
|
100,187
|
|
|
82,937
|
|
|
17,250
|
|
Comparing results for the first quarter of 2014 to the same period in
2013, FFO increased $7.5 million or $0.03 per share to $28.8 million or
$0.29 per share. The FFO increase was primarily from higher property
income due to three acquisitions completed since May 2013 and improved
occupancy in our portfolio. These increases were partially offset by
higher interest costs and G&A expenses. Net Income and EPS was $3.6
million or $0.04 per share for the first quarter of 2014 compared to a
net income of $4.4 million or $0.05 per share for the first quarter of
2013.
George J. Carter, President and CEO, commented as follows:
“For the first quarter of 2014, FSP's profits as represented by FFO
totaled approximately $28.8 million or $0.29 per share, essentially flat
when compared to the fourth quarter of 2013. Dividend distributions
declared for the first quarter of 2014 were approximately $19.0 million
or $0.19 per share. At this time, we are updating our full-year 2014 FFO
guidance to a range of $1.09 to $1.12 per diluted share.
Our directly-owned real estate portfolio of 39 properties, totaling
approximately 9,700,000 square feet, was approximately 94.5% leased as
of March 31, 2014, up from approximately 94.1% leased at the end of the
fourth quarter 2013. Our property portfolio of primarily urban in-fill
office assets has relatively modest lease expirations during 2014, which
we have continued to proactively reduce. As of the end of the first
quarter 2014, about 4.8% of our commercial square footage is scheduled
to expire during the balance of 2014. Tenant improvement expenditures
and leasing costs continue to moderate in relation to the level of
rental revenues being achieved.
Organic "same-store" rental growth increased 2.9% in the first quarter,
however no new property acquisitions were completed. Potential new
property acquisition possibilities are actively being worked on as well
as selected property disposition opportunities. We would anticipate both
property acquisition and disposition activities this year to result in
some level of asset recycling. Raising new capital for additional
property acquisition activity will be subject to broader
capital/property market conditions. In addition, we are pleased to
announce that, following the December 31, 2015 expiration of our lease
with TCF Bank at 801 Marquette Avenue South, Minneapolis, Minnesota, we
intend to redevelop that existing four-story office building. When we
acquired this asset in 2010 as a part of a two-property purchase, the
opportunity to pursue development was our primary, long-term investment
objective as we believe that the site is both one of the best and most
underdeveloped locations in the central business district of
Minneapolis, one of our core markets. We are very optimistic about this
project and its future potential to contribute meaningfully to our
profits, and we will look forward to providing you more details in the
future, as we pursue this opportunity.
As the second quarter of 2014 begins, FSP remains very optimistic about
its continuing growth prospects.”
Dividend Update
On April 11, 2014, the Company announced that its Board of Directors
declared a regular quarterly dividend for the three months ended March
31, 2014 of $0.19 per share of common stock that will be paid on May 15,
2014 to stockholders of record on April 25, 2014.
FFO Guidance
We are updating our full year FFO guidance for 2014 to be in the range
of $1.09 to $1.12 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 in the coming year. 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 March 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. 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
|
| | | March 31,
|
| | | |
| |
|
(In thousands, except per share amounts)
| | | 2014 | | 2013 |
| | | | |
|
|
Net income
| | |
$
|
3,573
| |
$
|
4,401
|
|
GAAP loss from non-consolidated REITs
| | | |
484
| | |
188
|
|
FFO from non-consolidated REITs
| | | |
419
| | |
647
|
|
Depreciation & amortization
| | |
|
24,289
|
|
|
15,984
|
|
NAREIT FFO
| | | |
28,765
| | |
21,220
|
|
Acquisition costs of new properties
| | |
|
14
|
|
|
17
|
|
Funds From Operations (FFO)
| | |
$
|
28,779
|
|
$
|
21,237
|
| | | | |
|
|
Per Share Data
| | | | | |
|
EPS
| | |
$
|
0.04
| |
$
|
0.05
|
|
FFO
| | |
$
|
0.29
| |
$
|
0.26
|
| | | | |
|
|
Weighted average shares (basic and diluted)
| | |
|
100,187
|
|
|
82,937
|
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 April 30, 2014 at 10:00 a.m. (ET) to
discuss the first quarter 2014 results. To access the call, please dial
1-888-317-6016. Internationally, the call may be accessed by dialing
1-412-317-6016. 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,
2013, 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 |
|
|
|
| March 31, |
|
(in thousands, except per share amounts)
|
|
| 2014 |
|
| 2013 |
| | | |
|
| |
|
Revenue:
| | | | | | |
|
Rental
| | |
$
|
61,597
| | | |
$
|
42,842
| |
|
Related party revenue:
| | | | | | |
|
Management fees and interest income from loans
| | | |
1,643
| | | | |
1,622
| |
|
Other
|
|
|
|
23
|
|
|
|
|
31
|
|
|
Total revenue
|
|
|
|
63,263
|
|
|
|
|
44,495
|
|
| | | | | |
|
|
Expenses:
| | | | | | |
|
Real estate operating expenses
| | | |
15,071
| | | | |
10,770
| |
|
Real estate taxes and insurance
| | | |
9,251
| | | | |
6,595
| |
|
Depreciation and amortization
| | | |
24,300
| | | | |
15,781
| |
|
Selling, general and administrative
| | | |
3,272
| | | | |
2,532
| |
|
Interest
|
|
|
|
7,176
|
|
|
|
|
4,208
|
|
| | | | | |
|
|
Total expenses
|
|
|
|
59,070
|
|
|
|
|
39,886
|
|
| | | | | |
|
|
Income before interest income, equity in losses of
| | | | | | |
|
non-consolidated REITs and taxes
| | | |
4,193
| | | | |
4,609
| |
|
Interest income
| | | |
1
| | | | |
1
| |
|
Equity in losses of non-consolidated REITs
|
|
|
|
(484
|
)
|
|
|
|
(188
|
)
|
| | | | | |
|
|
Income before taxes on income
| | | |
3,710
| | | | |
4,422
| |
|
Taxes on income
|
|
|
|
137
|
|
|
|
|
119
|
|
| | | | | |
|
|
Income from continuing operations
|
|
|
|
3,573
|
|
|
|
|
4,303
|
|
| | | | | |
|
|
Discontinued operations:
| | | | | | |
|
Income from discontinued operations,
| | | | | | |
|
net of income tax
|
|
|
|
-
|
|
|
|
|
98
|
|
|
Total discontinued operations
|
|
|
|
-
|
|
|
|
|
98
|
|
| | | | | |
|
|
Net income
|
|
|
$
|
3,573
|
|
|
|
$
|
4,401
|
|
| | | | | |
|
|
Weighted average number of shares outstanding,
| | | | | | |
|
basic and diluted
|
|
|
|
100,187
|
|
|
|
|
82,937
|
|
| | | | | |
|
|
Earnings (loss) per share, basic and diluted, attributable to:
| | | | | | |
|
Continuing operations
| | |
$
|
0.04
| | | |
$
|
0.05
| |
|
Discontinued operations
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Net income per share, basic and diluted
|
|
|
$
|
0.04
|
|
|
|
$
|
0.05
|
|
|
|
| |
|
| |
Franklin Street Properties Corp. Financial Results
Supplementary Schedule B
Condensed Consolidated Balance Sheets
(Unaudited)
|
| | | | | |
|
| | | | | |
|
| | | March 31, | | | December 31, |
|
(in thousands, except share and par value amounts)
|
|
| 2014 |
|
| 2013 |
|
Assets:
| | | | | | |
|
Real estate assets, net
| | |
$
|
1,558,136
| | | |
$
|
1,568,338
| |
|
Acquired real estate leases, less accumulated amortization
| | | | | | |
|
of $78,664 and $69,848, respectively
| | | |
172,262
| | | | |
183,454
| |
|
Investment in non-consolidated REITs
| | | |
79,983
| | | | |
80,494
| |
|
Cash and cash equivalents
| | | |
20,031
| | | | |
19,623
| |
|
Restricted cash
| | | |
688
| | | | |
643
| |
|
Tenant rent receivables, less allowance for doubtful accounts
| | | | | | |
|
of $50 and $50, respectively
| | | |
6,035
| | | | |
5,102
| |
|
Straight-line rent receivable, less allowance for doubtful accounts
| | | | | | |
|
of $135 and $135, respectively
| | | |
44,392
| | | | |
42,261
| |
|
Prepaid expenses and other assets
| | | |
9,208
| | | | |
10,506
| |
|
Related party mortgage loan receivables
| | | |
101,916
| | | | |
99,746
| |
|
Other assets: derivative asset
| | | |
4,801
| | | | |
5,321
| |
|
Office computers and furniture, net of accumulated depreciation
| | | | | | |
|
of $819 and $747, respectively
| | | |
746
| | | | |
709
| |
|
Deferred leasing commissions, net of accumulated amortization
| | | | | | |
|
of $16,246 and $15,031, respectively
|
|
|
|
27,477
|
|
|
|
|
27,837
|
|
|
Total assets
|
|
|
$
|
2,025,675
|
|
|
|
$
|
2,044,034
|
|
| | | | | |
|
|
Liabilities and Stockholders’ Equity:
| | | | | | |
|
Liabilities:
| | | | | | |
|
Bank note payable
| | |
$
|
316,500
| | | |
$
|
306,500
| |
|
Term loans payable
| | | |
620,000
| | | | |
620,000
| |
|
Accounts payable and accrued expenses
| | | |
34,390
| | | | |
44,137
| |
|
Accrued compensation
| | | |
1,027
| | | | |
2,985
| |
|
Tenant security deposits
| | | |
4,258
| | | | |
4,027
| |
|
Other liabilities: derivative liability
| | | |
3,825
| | | | |
2,044
| |
|
Acquired unfavorable real estate leases, less accumulated
amortization
| | | | | | |
|
of $7,398 and $6,926, respectively
|
|
|
|
13,273
|
|
|
|
|
14,175
|
|
|
Total liabilities
|
|
|
|
993,273
|
|
|
|
|
993,868
|
|
| | | | | |
|
|
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
| | | |
976
| | | | |
3,277
| |
|
Accumulated distributions in excess of accumulated earnings
|
|
|
|
(242,140
|
)
|
|
|
|
(226,677
|
)
|
|
Total stockholders’ equity
|
|
|
|
1,032,402
|
|
|
|
|
1,050,166
|
|
|
Total liabilities and stockholders’ equity
|
|
|
$
|
2,025,675
|
|
|
|
$
|
2,044,034
|
|
|
|
| |
Franklin Street Properties Corp. Financial Results
Supplementary Schedule C
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
| | |
|
| | |
|
| | | For the Three Months Ended March 31, |
|
(in thousands)
|
|
| 2014 |
|
| 2013 |
| Cash flows from operating activities: | | | |
|
| |
|
Net income
| | |
$
|
3,573
| | | |
$
|
4,401
| |
|
Adjustments to reconcile net income to net cash provided by
operating activities:
| | | | | | |
|
Depreciation and amortization expense
| | | |
24,797
| | | | |
16,415
| |
|
Amortization of above market lease
| | | |
(11
|
)
| | | |
(2
|
)
|
|
Equity in losses of non-consolidated REITs
| | | |
484
| | | | |
187
| |
|
Increase (decrease) in bad debt reserve
| | | |
-
| | | | |
(1,190
|
)
|
|
Changes in operating assets and liabilities:
| | | | | | |
|
Restricted cash
| | | |
(45
|
)
| | | |
(8
|
)
|
|
Tenant rent receivables
| | | |
(933
|
)
| | | |
582
| |
|
Straight-line rents
| | | |
(1,784
|
)
| | | |
(657
|
)
|
|
Lease acquisition costs
| | | |
(347
|
)
| | | |
(189
|
)
|
|
Prepaid expenses and other assets
| | | |
800
| | | | |
70
| |
|
Accounts payable, accrued expenses and other items
| | | |
(7,257
|
)
| | | |
(5,011
|
)
|
|
Accrued compensation
| | | |
(1,958
|
)
| | | |
(2,000
|
)
|
|
Tenant security deposits
| | | |
231
| | | | |
(15
|
)
|
|
Payment of deferred leasing commissions
|
|
|
|
(1,113
|
)
|
|
|
|
(2,624
|
)
|
|
Net cash provided by operating activities
|
|
|
|
16,437
|
|
|
|
|
9,959
|
|
| Cash flows from investing activities: | | | | | | |
|
Purchase of real estate assets, office computers and
furniture
| | | |
(4,850
|
)
| | | |
(3,465
|
)
|
|
Investment in non-consolidated REITs
| | | |
-
| | | | |
4,752
| |
|
Distributions in excess of earnings from non-consolidated REITs
| | | |
27
| | | | |
27
| |
|
Investment in related party mortgage loan receivable
| | | |
(2,170
|
)
| | | |
(3,000
|
)
|
|
Changes in deposits on real estate assets
|
|
|
|
-
|
|
|
|
|
(1,500
|
)
|
|
Net cash used in investing activities
|
|
|
|
(6,993
|
)
|
|
|
|
(3,186
|
)
|
| Cash flows from financing activities: | | | | | | |
|
Distributions to stockholders
| | | |
(19,036
|
)
| | | |
(15,758
|
)
|
|
Borrowings under bank note payable
|
|
|
|
10,000
|
|
|
|
|
5,000
|
|
|
Net cash used in financing activities
|
|
|
|
(9,036
|
)
|
|
|
|
(10,758
|
)
|
| Net increase (decrease) in cash and cash equivalents | | | |
408
| | | | |
(3,985
|
)
|
| Cash and cash equivalents, beginning of year
|
|
|
|
19,623
|
|
|
|
|
21,267
|
|
| Cash and cash equivalents, end of period
|
|
|
$
|
20,031
|
|
|
|
$
|
17,282
|
|
|
|
| |
|
| |
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 |
|
2014
| | |
463,849
| | |
4.8
|
%
|
|
2015
| | |
918,042
| | |
9.5
|
%
|
|
2016
| | |
944,181
| | |
9.8
|
%
|
|
2017
| | |
1,078,987
| | |
11.1
|
%
|
|
2018
| | |
902,727
| | |
9.3
|
%
|
|
Thereafter (2)
| | |
5,378,269
|
|
|
55.5
|
%
|
| | |
9,686,055
|
|
|
100.0
|
%
|
| | | | | | |
|
| | | | | | |
|
(1) Percentages are determined based upon square footage of
expiring commercial leases.
|
(2) Includes 529,588 square feet of current vacancies.
|
|
(dollars & square feet in 000's)
|
|
|
As of March 31, 2014 |
| | |
# of
|
|
| |
|
|
% of
|
|
|
Square
|
|
|
% of
|
State | | | Properties | | | Investment | | | Portfolio | | | Feet | | | Portfolio |
| | | | | | | | | | | | | | |
|
| Texas | | |
10
| | | $ 400,568 | | |
25.7%
| | |
2,537
| | |
26.2%
|
| Colorado | | |
6
| | |
454,396
| | |
29.1%
| | |
2,118
| | |
21.9%
|
| Georgia | | |
3
| | |
225,161
| | |
14.4%
| | |
1,396
| | |
14.4%
|
| Virginia | | |
4
| | |
95,049
| | |
6.1%
| | |
685
| | |
7.1%
|
| Minnesota | | |
2
| | |
42,347
| | |
2.7%
| | |
628
| | |
6.5%
|
| Missouri | | |
3
| | |
63,808
| | |
4.1%
| | |
477
| | |
4.9%
|
| North Carolina | | |
3
| | |
65,013
| | |
4.2%
| | |
431
| | |
4.4%
|
| Illinois | | |
2
| | |
47,577
| | |
3.1%
| | |
372
| | |
3.8%
|
| Maryland | | |
1
| | |
52,288
| | |
3.4%
| | |
325
| | |
3.4%
|
| Florida | | |
1
| | |
43,989
| | |
2.8%
| | |
213
| | |
2.2%
|
| Indiana | | |
1
| | |
33,696
| | |
2.2%
| | |
205
| | |
2.1%
|
| California | | |
2
| | |
20,752
| | |
1.3%
| | |
182
| | |
1.9%
|
| Washington | | |
1
|
|
|
13,492
|
|
|
0.9%
| | |
117
|
|
|
1.2%
|
| | |
39
|
|
| $ 1,558,136 |
|
|
100.0%
| | |
9,686
|
|
|
100.0%
|
|
|
| |
| |
| |
| |
| |
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule E
Portfolio and Other Supplementary Information
(Unaudited & Approximated)
|
| | | | | | | | | | |
|
| | | | | | | | | | |
|
| Capital Expenditures | | | | | | | | | | | |
| Owned Portfolio | | |
Three Months
| | | | | | | | |
|
(in thousands)
| | |
Ended
| | | | | | | | |
| | | 31-Mar-14 | | | | | | | | |
| | | | | | | | | | |
|
|
Tenant improvements
| | |
$
|
1,133
| | | | | | | | |
|
Deferred leasing costs
| | | |
1,112
| | | | | | | | |
|
Non-investment capex
| | |
|
1,119
| | | | | | | | |
| | |
$
|
3,364
| | | | | | | | |
| | | | | | | | | | |
|
| | |
For the Three Months Ended:
| |
Year ended
|
| | | 31-Mar-13 | | 30-Jun-13 | | 30-Sep-13 | | 31-Dec-13 | | 31-Dec-13 |
| | | | | | | | | | |
|
|
Tenant improvements
| | |
$
|
1,729
| |
$
|
5,754
| |
$
|
4,596
| |
$
|
2,992
| |
$
|
15,071
|
|
Deferred leasing costs
| | | |
2,813
| | |
1,087
| | |
3,821
| | |
1,536
| | |
9,257
|
|
Non-investment capex
| | |
|
1,118
| |
|
1,622
| |
|
1,552
| |
|
1,479
| |
|
5,771
|
| | |
$
|
5,660
| |
$
|
8,463
| |
$
|
9,969
| |
$
|
6,007
| |
$
|
30,099
|
| Square foot & leased percentages |
|
| March 31,
|
|
| December 31,
|
|
| | | |
2014
| | |
2013
|
| | | | | | |
|
|
Owned portfolio of commercial real estate (1)
| | | | | | |
|
Number of properties
| | |
39
| | |
39
|
|
Square feet
| | |
9,686,055
| | |
9,685,285
|
|
Leased percentage
| | |
94.5%
| | |
94.1%
|
| | | | | | |
|
|
Investments in non-consolidated REITs
| | | | | | |
|
Number of properties
| | |
2
| | |
2
|
|
Square feet
| | |
1,395,500
| | |
1,395,500
|
|
Leased percentage
| | |
64.0%
| | |
64.1%
|
| | | | | | |
|
|
Single Asset REITs (SARs) managed (1)
| | | | | | |
|
Number of properties
| | |
12
| | |
12
|
|
Square feet
| | |
3,067,199
| | |
3,067,199
|
|
Leased percentage
| | |
87.4%
| | |
87.4%
|
| | | | | | |
|
|
Total owned, investments & managed properties (1)
| | | | | | |
|
Number of properties
| | |
53
| | |
53
|
|
Square feet
| | |
14,148,754
| | |
14,147,984
|
|
Leased percentage
| | |
90.0%
| | |
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-Mar-14 | | |
Held
|
|
FSP 303 East Wacker Drive Corp. | | | Chicago | | |
IL
| | |
860,429
| | |
54.0%
| | |
43.7%
|
| FSP Grand Boulevard Corp. | | | Kansas City | | |
MO
| | |
535,071
|
|
|
80.0%
| | |
27.0%
|
| | | | | | | | |
1,395,500
|
|
|
64.0%
| | | |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
Franklin Street Properties Corp. Earnings Release Supplementary Schedule F Percentage of Leased Space (Unaudited & Estimated) |
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | Fourth | | | | | | First |
| | | | | | | | | | | % Leased (1) | | | Quarter | | | % Leased (1) | | | Quarter |
| | | | | | | | | | | as of | | | Average % | | | as of | | | Average % |
| | Property Name | | | Location | | | Square Feet | | | 31-Dec-13 | | | Leased (2) | | | 31-Mar-14 | | | Leased (2) |
| | | | | | | | | | | | | | | | | | | |
|
|
1
| | PARK SENECA | | | Charlotte, NC | | |
109,674
| | |
82.3%
| | |
81.5%
| | |
83.6%
| | |
82.5%
|
|
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 | | |
110,405
| | |
85.4%
| | |
85.4%
| | |
97.3%
| | |
89.4%
|
|
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
| | |
54.4%
| | |
53.4%
| | |
54.4%
| | |
54.4%
|
|
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
| | |
100.0%
| | |
100.0%
| | |
100.0%
| | |
100.0%
|
|
11
| | MONTAGUE | | | San Jose, CA | | |
145,951
| | |
100.0%
| | |
100.0%
| | |
100.0%
| | |
100.0%
|
|
12
| | ADDISON | | | Addison, TX | | |
293,787
| | |
94.3%
| | |
94.3%
| | |
94.3%
| | |
94.3%
|
|
13
| | COLLINS CROSSING
| | | Richardson, TX | | |
298,766
| | |
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
| | |
99.1%
| | |
99.1%
| | |
99.1%
| | |
99.1%
|
|
16
| | LIBERTY PLAZA | | | Addison, TX | | |
218,934
| | |
96.0%
| | |
95.6%
| | |
96.0%
| | |
96.0%
|
|
17
| | INNSBROOK | | | Glen Allen, VA | | |
298,456
| | |
99.9%
| | |
99.9%
| | |
99.9%
| | |
99.9%
|
|
18
| |
380 INTERLOCKEN
| | | Broomfield, CO | | |
240,184
| | |
86.1%
| | |
86.1%
| | |
95.2%
| | |
88.5%
|
|
19
| |
BLUE LAGOON
| | | Miami, FLA | | |
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%
| | |
97.4%
| | |
100.0%
| | |
100.0%
|
|
22
| |
ONE OVERTON PARK | | | Atlanta, GA | | |
387,267
| | |
98.3%
| | |
98.7%
| | |
98.9%
| | |
98.9%
|
|
23
| |
390 INTERLOCKEN
| | | Broomfield, CO | | |
241,516
| | |
69.4%
| | |
69.4%
| | |
69.4%
| | |
69.4%
|
|
24
| | EAST BALTIMORE | | | Baltimore, MD | | |
325,445
| | |
77.8%
| | |
77.5%
| | |
77.8%
| | |
77.8%
|
|
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
| | |
100.0%
| | |
100.0%
| | |
100.0%
| | |
100.0%
|
|
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 | | |
474,991
| | |
91.0%
| | |
90.5%
| | |
90.7%
| | |
90.7%
|
|
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
| | |
90.4%
| | |
90.4%
| | |
93.6%
| | |
91.4%
|
|
36
| |
WESTCHASE I & II
| | | Houston, TX | | |
629,025
| | |
97.1%
| | |
97.1%
| | |
97.1%
| | |
97.1%
|
|
37
| |
1999 BROADWAY | | | Denver, CO | | |
673,839
| | |
95.8%
| | |
95.5%
| | |
95.6%
| | |
95.7%
|
|
38
| |
999 PEACHTREE | | | Atlanta, GA | | |
621,946
| | |
94.3%
| | |
94.3%
| | |
93.0%
| | |
93.8%
|
|
39
| |
1001 17th STREET
| | | Denver, CO | | |
655,420
| | |
88.5%
| | |
88.5%
| | |
88.5%
| | |
88.5%
|
| | | | | | | |
|
|
|
|
|
|
|
|
|
|
|
|
|
| | TOTAL WEIGHTED AVERAGE | | | | | | 9,686,055 |
|
| 94.1% |
|
| 94.0% |
|
| 94.5% |
|
| 94.2% |
| | | | | | | | | | | | | | | | | | | |
|
|
(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 FSP’s owned
portfolio based on leased square feet:
|
| |
| |
| |
| | | | |
|
|
As of March 31, 2014 | | | | |
| | | | |
% 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
| Sutherland Asbill Brennan LLP | |
243,839
| |
2.5%
|
|
5
|
Newfield Exploration Company
| |
234,495
| |
2.4%
|
|
6
| US Government (a)
| |
229,752
| |
2.4%
|
|
7
|
Burger King Corporation
| |
212,619
| |
2.2%
|
|
8
| Denbury Onshore, LLC | |
202,600
| |
2.1%
|
|
9
| RGA Reinsurance Company | |
197,354
| |
2.0%
|
|
10
| SunTrust Bank (b)
| |
182,888
| |
1.9%
|
|
11
| Citicorp Credit Services, Inc | |
176,848
| |
1.8%
|
|
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
| |
1.5%
|
|
15
| Petrobras America, Inc. | |
144,813
| |
1.5%
|
|
16
| Murphy Exploration & Production Company | |
144,677
| |
1.5%
|
|
17
| Argo Data Resource Corporation | |
138,540
| |
1.4%
|
|
18
|
Monsanto Company
| |
127,778
| |
1.3%
|
|
19
|
Federal National Mortgage Association
| |
123,144
| |
1.3%
|
|
20
|
Vail Resorts
| |
122,232
|
|
1.3%
|
|
Total
| |
3,707,490
|
|
38.3%
|
| | | | |
|
|
(a) Includes 180,444 and 37,813 square feet which expire in 2018 &
2014, respectively.
|
|
The remaining 11,495 square feet expire between 2015 - 2020.
|
|
(b) Includes 55,388 square feet which expires October 31, 2016.
|
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 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.
Franklin Street Properties Corp.
John Demeritt, 877-686-9496
Source: Franklin Street Properties Corp.