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Section 1: 8-K (8-K)

fsp_Current_Folio_8K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 


 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  October 30, 2018

 

Franklin Street Properties Corp.

(Exact name of registrant as specified in its charter)

 

Maryland

001-32470

04-3578653

(State or other jurisdiction
of incorporation)

(Commission
File Number)

(IRS Employer
Identification No.)

 

401 Edgewater Place, Suite 200, Wakefield,
Massachusetts

01880

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code:  (781) 557-1300

 

 

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


 

Item 2.02.  Results of Operations and Financial Condition.

 

On October 30, 2018, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three months ended September 30, 2018.  The full text of the press release issued in connection with the announcement is furnished as Exhibit 99.1 to this Current Report on Form 8-K.  The press release references certain supplemental operating and financial data that is now available on the Registrant’s website.  A copy of the supplemental operating and financial data is attached hereto as Exhibit 99.2 and is incorporated by reference herein. 

 

The information in this Form 8-K (including Exhibits 99.1 and 99.2) shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

 

Item 9.01.  Financial Statements and Exhibits.

 

(d)

Exhibits

 

See Exhibit Index attached hereto.

 

2


 

EXHIBIT INDEX

 

Exhibit No.

    

Description

 

 

 

99.1

 

Press Release issued by Franklin Street Properties Corp. on October 30, 2018. 

 

 

 

99.2

 

Supplemental Operating and Financial Data for the Third Quarter of 2018.

 

 

 

 

3


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

FRANKLIN STREET PROPERTIES CORP.

 

 

Date:  October 30, 2018

By:

/s/ George J. Carter

 

 

George J. Carter

 

 

Chief Executive Officer

 

 

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(Back To Top)

Section 2: EX-99.1 (EX-99.1)

fsp_Ex99_1

Exhibit 99.1

 

 

 

PRESS RELEASE

Franklin Street Properties Corp.

 

401 Edgewater Place Suite 200 Wakefield, Massachusetts  01880 (781) 557-1300    www.fspreit.com

 

 

 

Contact: Georgia Touma   (877) 686-9496

For Immediate Release

 

Franklin Street Properties Corp. Announces

Third Quarter 2018 Results

 

Wakefield, MA—October 30,  2018—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American:  FSP), a real estate investment trust (REIT), announced its results for the third quarter ended September 30, 2018.         

George J. Carter, Chairman and Chief Executive Officer, commented as follows:

“For the third quarter of 2018, FSP’s Funds from Operations or FFO totaled approximately $26.2 million or $0.24 per share.  Leasing activity continued to be strong within our property portfolio during the quarter and we are currently seeing that activity extend into the fourth quarter of 2018.  We also saw increased leasing in our energy influenced markets of Houston and Denver and anticipate further occupancy gains in those markets during the balance of the year as well as 2019.  Dispositions during the quarter of the properties owned by two of our single-asset REITs in which FSP had a financial interest provided initial cash proceeds totaling approximately $74.9 million, which was used for debt reduction.  These dispositions are projected to have the net effect of reducing FFO for the fourth quarter and full year 2018, and are reflected in our updated FFO guidance.  A recast of two of our existing unsecured term loans totaling $370 million during the quarter moved out our near term debt maturities, achieved future interest cost savings and maintained corporate liquidity for anticipated future leasing costs. We remain optimistic about achieving meaningful value creation within our property portfolio during 2018 and 2019, while maintaining our financial capabilities to help achieve those results.” 

Highlights

·

FFO was $26.2 million or $0.24 per basic and diluted share for the third  quarter ended September 30, 2018.  We had Net Income of $9.6 million or $0.09 per basic and diluted share for the third quarter ended September 30, 2018.        

·

Adjusted Funds From Operations (AFFO) was $0.12 per basic and diluted share for the third quarter of 2018. 

·

During the third quarter we recast $370 million of our unsecured term loans with our bank group and extended maturities of these loans, with $205 million now maturing in November 2021, and $165 million now maturing in January 2024.  As a result, we have no scheduled debt maturities for the next three years.  The lending spreads on these loans decreased, which we anticipate will decrease interest costs approximately $1 million on an annualized basis while outstanding based on our current credit rating. 

·

We reduced debt $81 million during the third quarter, primarily from application of approximately $74.9 million in cash proceeds from dispositions of the properties owned by two of our single-asset REITs in which we had a financial interest.                     

 

Leasing Update

·

Our directly owned real estate portfolio of 34 properties totaling approximately 9.8 million square feet was approximately 90.5% leased as of September 30, 2018, which was a 1.5% increase compared to June 30, 2018.            

·

During the three months ended September 30, 2018, we leased approximately 515,000 square feet, of which approximately 177,000 square feet was with new tenants.  During the nine months ended September 30, 2018, we leased approximately 1,283,000 square feet, of which approximately 343,000 square feet was with new tenants.  

·

The portfolio assets in our five core markets reached a three-year high point of 88.0% leased

 


 

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occupancy as of September 30, 2018, primarily from leasing improvements in our Denver and Houston assets.   

o

Our core market of Denver’s leased percentage increased to 89.6% as of September 30, 2018, up from 87.5% leased as of June 30, 2018.

o

Our core market of Houston’s leased percentage increased to 85.1% as of September 30, 2018, up from 79.3% leased as of June 30, 2018.

·

FSP expects the overall trend of improving leased occupancy in our core five markets to continue into 2019. 

 

Acquisition and Disposition Update    

·

On July 19, 2018, one of our single-asset REITs, FSP Grand Boulevard Corp., sold the property owned by it to a third party.  On August 17, 2018, we received an initial cash distribution of $5.9 million in consideration of the  financial interest we previously held.         

·

On September 24, 2018, one of our single-asset REITs, FSP 303 East Wacker Drive Corp., sold the property owned by it to a third party.  On September 27, 2018, we received an initial cash distribution of $69 million in consideration of the financial interest we previously held.     

·

We anticipate potential additional disposition activity within our managed portfolio during the remainder of 2018 and/or 2019.       

 

Dividend Update

On October 5, 2018, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended September 30, 2018 of $0.09 per share of common stock that will be paid on November 8, 2018 to stockholders of record on October 19, 2018.      

 

Non-GAAP Financial Information

A reconciliation of Net income (loss) to FFO, AFFO and Sequential Same Store NOI and our definitions of FFO, AFFO and Sequential Same Store NOI can be found on Supplementary Schedules H and I.    

 

Real Estate Update

Supplementary schedules provide property information for the Company’s owned and managed real estate portfolio as of September 30, 2018.  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.fspreit.com.  

 


 

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FFO Guidance

We are updating our full year FFO guidance for 2018, which is estimated to be in the range of approximately $0.96 to $0.97 per basic and diluted share, and are initiating guidance for the fourth quarter of 2018, which is estimated to be in the range of approximately $0.23 to $0.24 per basic and diluted share.  We are updating full year 2018 net income guidance, which is estimated to be in the range of approximately $0.11 to $0.12 per basic and diluted share, and are initiating net income guidance for the fourth quarter of 2018, which is estimated to be in the range of approximately $0.00 to $0.01 per basic and 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 general and administrative 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. 

 

A reconciliation of the guidance for net income (loss) per share to the guidance for FFO per share is provided as follows:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2018 Range

 

 

Full Year 2018 Range

 

     

Low

     

High

     

Low

     

High

Net income (loss) per share

 

$

 -

 

$

0.01

 

$

0.11

 

$

0.12

GAAP income from non-consolidated REITs

 

 

 -

 

 

 -

 

 

(0.06)

 

 

(0.06)

FFO from non-consolidated REITs

 

 

 -

 

 

 -

 

 

0.02

 

 

0.02

Depreciation & Amortization

 

 

0.23

 

 

0.23

 

 

0.89

 

 

0.89

Funds From Operations per share

 

$

0.23

 

$

0.24

 

$

0.96

 

$

0.97

 

Today’s news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.fspreit.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 31, 2018 at 10:00 a.m. (ET) to discuss the third quarter results. To access the call, please dial 1-800-464-8240. Internationally, the call may be accessed by dialing 1-412-902-6521. To access the call from Canada, please dial 1-866-605-3852. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.fspreit.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 five core 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.fspreit.com.

 

 


 

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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, such as our ability to lease space in the future,  expectations for FFO and net income (loss) in future periods, expectations for growth,  leasing and acquisition and disposition activities in future periods, including in the Denver and Houston markets, and prospects for long-term sustainable growth, that are based on current judgments and current knowledge of management and 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, delays in construction schedules, 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, 2017, 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, acquisitions, dispositions, 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

Reconciliation and Definitions of Funds From Operations (FFO) and Adjusted

 

Funds From Operations (AFFO)

H

Reconciliation and Definition of Sequential Same Store results to Property Net

 

Operating Income (NOI) and Net Income (Loss)

I

 

 

 


 

-5-

Franklin Street Properties Corp. Financial Results

Supplementary Schedule A

Condensed Consolidated Income (Loss) Statements

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the

 

For the

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

(in thousands, except per share amounts)

  

2018

  

2017

  

2018

  

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

67,436

 

$

67,339

 

$

198,473

 

$

201,710

 

Related party revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees and interest income from loans

 

 

1,261

 

 

1,278

 

 

3,793

 

 

4,014

 

Other

 

 

 8

 

 

 9

 

 

26

 

 

29

 

Total revenue

 

 

68,705

 

 

68,626

 

 

202,292

 

 

205,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate operating expenses

 

 

17,946

 

 

17,898

 

 

52,051

 

 

52,492

 

Real estate taxes and insurance

 

 

11,651

 

 

11,882

 

 

35,120

 

 

35,880

 

Depreciation and amortization

 

 

23,277

 

 

24,988

 

 

70,903

 

 

75,599

 

General and administrative

 

 

3,394

 

 

3,286

 

 

9,908

 

 

9,806

 

Interest

 

 

9,935

 

 

8,258

 

 

29,174

 

 

23,730

 

Total expenses

 

 

66,203

 

 

66,312

 

 

197,156

 

 

197,507

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before equity in income (loss) of non-consolidated REITs, other, gain (loss) on sale of properties and properties held for sale, less applicable income tax and taxes

 

 

2,502

 

 

2,314

 

 

5,136

 

 

8,246

 

Equity in income (loss) of non-consolidated REITs

 

 

7,180

 

 

(121)

 

 

6,793

 

 

(719)

 

Other

 

 

 —

 

 

67

 

 

 —

 

 

218

 

Gain (loss) on sale of properties and properties held for sale, less applicable income tax

 

 

 —

 

 

(257)

 

 

 —

 

 

(18,460)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes on income

 

 

9,682

 

 

2,003

 

 

11,929

 

 

(10,715)

 

Taxes on income

 

 

74

 

 

100

 

 

231

 

 

297

 

Net income (loss)

 

$

9,608

 

$

1,903

 

$

11,698

 

$

(11,012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding,  basic and diluted

 

 

107,231

 

 

107,231

 

 

107,231

 

 

107,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share, basic and diluted

 

$

0.09

 

$

0.02

 

$

0.11

 

$

(0.10)

 

 


 

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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)

    

2018

    

2017

 

Assets:

 

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

 

Land

 

$

191,578

 

$

191,578

 

Buildings and improvements

 

 

1,848,362

 

 

1,811,631

 

Fixtures and equipment

 

 

7,842

 

 

5,614

 

 

 

 

2,047,782

 

 

2,008,823

 

Less accumulated depreciation

 

 

419,746

 

 

376,131

 

Real estate assets, net

 

 

1,628,036

 

 

1,632,692

 

Acquired real estate leases, less accumulated amortization of $98,890 and $109,771, respectively

 

 

65,687

 

 

86,520

 

Investment in non-consolidated REITs

 

 

 —

 

 

70,164

 

Cash, cash equivalents and restricted cash

 

 

10,434

 

 

9,819

 

Tenant rent receivables, less allowance for doubtful accounts of $225 and $250, respectively

 

 

3,206

 

 

3,123

 

Straight-line rent receivable, less allowance for doubtful accounts of $50 and $50, respectively

 

 

53,056

 

 

53,194

 

Prepaid expenses and other assets

 

 

9,259

 

 

8,387

 

Related party mortgage loan receivables

 

 

70,925

 

 

71,720

 

Other assets: derivative asset

 

 

22,265

 

 

13,925

 

Office computers and furniture, net of accumulated depreciation of $1,493 and $1,420, respectively

 

 

216

 

 

289

 

Deferred leasing commissions, net of accumulated amortization of $24,059 and $22,276, respectively

 

 

45,475

 

 

40,679

 

Total assets

 

$

1,908,559

 

$

1,990,512

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Bank note payable

 

$

17,000

 

$

78,000

 

Term loans payable, less unamortized financing costs of $6,086 and $5,099, respectively

 

 

763,914

 

 

764,901

 

Series A&B Senior Notes, less unamortized financing costs of $1,191 and $1,308, respectively

 

 

198,809

 

 

198,692

 

Accounts payable and accrued expenses

 

 

62,699

 

 

61,039

 

Accrued compensation

 

 

2,844

 

 

3,641

 

Tenant security deposits

 

 

5,619

 

 

5,383

 

Other liabilities: derivative liabilities

 

 

 —

 

 

1,759

 

Acquired unfavorable real estate leases, less accumulated amortization of $7,985 and $7,638, respectively

 

 

4,261

 

 

5,805

 

Total liabilities

 

 

1,055,146

 

 

1,119,220

 

 

 

 

 

 

 

 

 

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, 107,231,155 and 107,231,155 shares issued and outstanding, respectively

 

 

11

 

 

11

 

Additional paid-in capital

 

 

1,356,457

 

 

1,356,457

 

Accumulated other comprehensive loss

 

 

22,265

 

 

12,166

 

Accumulated distributions in excess of accumulated earnings

 

 

(525,320)

 

 

(497,342)

 

Total stockholders’ equity

 

 

853,413

 

 

871,292

 

Total liabilities and stockholders’ equity

 

$

1,908,559

 

$

1,990,512

 

 

 

 

 

 

 

 

 

 


 

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Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the

 

 

 

Nine Months Ended

 

 

 

September 30,

 

(in thousands)

    

2018

    

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

 

$

11,698

 

$

(11,012)

 

Adjustments to reconcile net income or loss to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

73,127

 

 

77,418

 

Amortization of above and below market leases

 

 

(405)

 

 

(941)

 

Equity in (income) loss of non-consolidated REITs

 

 

(6,793)

 

 

719

 

Hedge ineffectiveness

 

 

 —

 

 

(218)

 

Loss on sale of properties and properties held for sale, less applicable income tax

 

 

 —

 

 

18,460

 

Increase (decrease) in allowance for doubtful accounts

 

 

(25)

 

 

25

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Tenant rent receivables

 

 

(58)

 

 

(902)

 

Straight-line rents

 

 

821

 

 

(2,021)

 

Lease acquisition costs

 

 

(683)

 

 

(876)

 

Prepaid expenses and other assets

 

 

(487)

 

 

(1,945)

 

Accounts payable and accrued expenses

 

 

(2,665)

 

 

(489)

 

Accrued compensation

 

 

(797)

 

 

(784)

 

Tenant security deposits

 

 

236

 

 

76

 

Payment of deferred leasing commissions

 

 

(11,051)

 

 

(8,178)

 

Net cash provided by operating activities

 

 

62,918

 

 

69,332

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Property improvements, fixtures and equipment

 

 

(35,901)

 

 

(41,862)

 

Investment in non-consolidated REITs

 

 

74,931

 

 

 —

 

Distributions in excess of earnings from non-consolidated REITs

 

 

710

 

 

1,041

 

Repayment of related party mortgage loan receivable

 

 

795

 

 

9,795

 

Proceeds received on sales of real estate assets

 

 

 —

 

 

6,160

 

Net cash used in investing activities

 

 

40,535

 

 

(24,866)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Distributions to stockholders

 

 

(39,676)

 

 

(61,122)

 

Borrowings under bank note payable

 

 

30,000

 

 

60,000

 

Repayments of bank note payable

 

 

(91,000)

 

 

(40,000)

 

Deferred financing costs

 

 

(2,162)

 

 

 —

 

Net cash used in financing activities

 

 

(102,838)

 

 

(41,122)

 

Net increase in cash, cash equivalents and restricted cash

 

 

615

 

 

3,344

 

Cash, cash equivalents and restricted cash, beginning of year

 

 

9,819

 

 

9,366

 

Cash, cash equivalents and restricted cash, end of period

 

$

10,434

 

$

12,710

 


 

-8-

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

 

2018

 

562,230

 

5.8%

 

2019

 

953,783

 

9.8%

 

2020

 

991,024

 

10.2%

 

2021

 

696,686

 

7.1%

 

2022

 

1,228,487

 

12.6%

 

Thereafter (2)

 

5,328,489

 

54.5%

 

 

 

9,760,699

 

100.0%

 


(1)

Percentages are determined based upon total square footage.   

(2)

Includes 931,200 square feet of current vacancies.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars & square feet in 000's)

 

As of September 30, 2018

 

 

 

# of

 

 

 

 

% of

 

Square

 

% of

 

State

    

Properties

    

Investment

    

Portfolio

    

Feet

    

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado

 

 6

 

$

538,772

 

33.5%

 

2,609

 

26.7%

 

Texas

 

 9

 

 

348,576

 

21.7%

 

2,417

 

24.8%

 

Georgia

 

 5

 

 

322,282

 

20.0%

 

1,967

 

20.2%

 

Minnesota (a)

 

 2

 

 

96,624

 

6.0%

 

620

 

6.3%

 

Virginia

 

 4

 

 

83,544

 

5.2%

 

685

 

7.0%

 

North Carolina

 

 2

 

 

50,975

 

3.2%

 

322

 

3.3%

 

Missouri

 

 2

 

 

48,150

 

3.0%

 

351

 

3.6%

 

Illinois

 

 2

 

 

49,350

 

3.1%

 

372

 

3.8%

 

Florida

 

 1

 

 

37,805

 

2.4%

 

213

 

2.2%

 

Indiana

 

 1

 

 

30,135

 

1.9%

 

205

 

2.1%

 

Total

 

34

 

$

1,606,213

 

100.0%

 

9,761

 

100.0%

 

 

(a)

Excludes approximately $21,823, which is our investment in a property that was redeveloped and is classified as non-operating.       


 

-9-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule E

Portfolio and Other Supplementary Information

(Unaudited & Approximated)

 

Recurring Capital Expenditures

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

For the Three Months Ended

 

Nine Months

 

 

    

31-Mar-18

    

30-Jun-18

    

30-Sep-18

    

30-Sep-18

 

Tenant improvements

 

$

6,777

 

$

8,212

 

$

7,084

 

$

22,073

 

Deferred leasing costs

 

 

1,021

 

 

5,314

 

 

4,394

 

 

10,729

 

Non-investment capex

 

 

1,858

 

 

2,558

 

 

2,328

 

 

6,744

 

 

 

$

9,656

 

$

16,084

 

$

13,806

 

$

39,546

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

Year Ended

 

 

    

31-Mar-17

    

30-Jun-17

    

30-Sep-17

    

31-Dec-17

    

31-Dec-17

 

Tenant improvements

 

$

6,474

 

$

5,363

 

$

4,474

 

$

4,166

 

$

20,477

 

Deferred leasing costs

 

 

1,579

 

 

1,963

 

 

4,482

 

 

5,869

 

 

13,893

 

Non-investment capex

 

 

1,670

 

 

1,685

 

 

1,860

 

 

3,836

 

 

9,051

 

 

 

$

9,723

 

$

9,011

 

$

10,816

 

$

13,871

 

$

43,421

 

 

 

 

 

 

 

 

Square foot & leased percentages

 

September 30,

 

December 31,

 

 

    

2018

    

2017

 

Owned portfolio of commercial real estate

 

 

 

 

 

Number of properties (a)

 

34

 

34

 

Square feet

 

9,760,699

 

9,761,984

 

Leased percentage

 

90.5%

 

89.7%

 

 

 

 

 

 

 

Investments in non-consolidated REITs (b)

 

 

 

 

 

Number of properties

 

 —

 

 2

 

Square feet

 

 —

 

1,396,071

 

Leased percentage

 

 —

 

75.3%

 

 

 

 

 

 

 

Single Asset REITs (SARs) managed

 

 

 

 

 

Number of properties

 

 3

 

 4

 

Square feet

 

674,342

 

810,278

 

Leased percentage

 

93.9%

 

93.0%

 

 

 

 

 

 

 

Total owned, investments & managed properties

 

 

 

 

 

Number of properties

 

37

 

40

 

Square feet

 

10,435,041

 

11,968,333

 

Leased percentage

 

90.7%

 

88.2%

 

(a)

Excludes one property that was redeveloped and is classified as non-operating. 

(b)

Properties were sold during the three months ended September 30, 2018. 

 

 

 


 

-10-

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-18

    

Leased (2)

    

30-Sep-18

    

Leased (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

FOREST PARK

 

Charlotte, NC

 

62,212

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

2

 

MEADOW POINT

 

Chantilly, VA

 

138,537

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

3

 

TIMBERLAKE

 

Chesterfield, MO

 

234,496

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

4

 

TIMBERLAKE EAST

 

Chesterfield, MO

 

117,036

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

5

 

NORTHWEST POINT

 

Elk Grove Village, IL

 

177,095

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

6

 

PARK TEN

 

Houston, TX

 

157,460

 

89.5%

 

84.9%

 

89.5%

 

89.5%

 

7

 

PARK TEN PHASE II

 

Houston, TX

 

156,746

 

1.4%

 

1.4%

 

59.7%

 

34.6%

 

8

 

GREENWOOD PLAZA

 

Englewood, CO

 

196,236

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

9

 

ADDISON

 

Addison, TX

 

288,794

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

10

 

COLLINS CROSSING

 

Richardson, TX

 

300,887

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

11

 

INNSBROOK

 

Glen Allen, VA

 

298,456

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

12

 

RIVER CROSSING

 

Indianapolis, IN

 

205,059

 

94.9%

 

95.3%

 

94.9%

 

94.9%

 

13

 

LIBERTY PLAZA

 

Addison, TX

 

218,934

 

85.8%

 

85.0%

 

80.8%

 

80.3%

 

14

 

380 INTERLOCKEN

 

Broomfield, CO

 

240,358

 

86.2%

 

86.2%

 

86.2%

 

86.2%

 

15

 

390 INTERLOCKEN

 

Broomfield, CO

 

241,512

 

98.8%

 

98.5%

 

98.2%

 

98.4%

 

16

 

BLUE LAGOON

 

Miami, FL

 

212,619

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

17

 

ELDRIDGE GREEN

 

Houston, TX

 

248,399

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

18

 

ONE OVERTON PARK

 

Atlanta, GA

 

387,267

 

79.3%

 

67.4%

 

79.7%

 

79.5%

 

19

 

LOUDOUN TECH

 

Dulles, VA

 

136,658

 

95.7%

 

95.7%

 

95.7%

 

95.7%

 

20

 

4807 STONECROFT

 

Chantilly, VA

 

111,469

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

21

 

121 SOUTH EIGHTH ST

 

Minneapolis, MN

 

293,460

 

78.9%

 

78.1%

 

80.4%

 

79.1%

 

22

 

EMPEROR BOULEVARD

 

Durham, NC

 

259,531

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

23

 

LEGACY TENNYSON CTR

 

Plano, TX

 

202,600

 

86.4%

 

86.4%

 

90.4%

 

87.7%

 

24

 

ONE LEGACY

 

Plano, TX

 

214,110

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

25

 

909 DAVIS

 

Evanston, IL

 

195,098

 

92.2%

 

92.2%

 

97.8%

 

97.8%

 

26

 

ONE RAVINIA DRIVE

 

Atlanta, GA

 

386,602

 

91.3%

 

91.7%

 

91.3%

 

91.3%

 

27

 

TWO RAVINIA

 

Atlanta, GA

 

411,047

 

77.4%

 

76.7%

 

78.2%

 

77.7%

 

28

 

WESTCHASE I & II

 

Houston, TX

 

629,025

 

88.1%

 

87.3%

 

84.5%

 

85.8%

 

29

 

1999 BROADWAY

 

Denver, CO

 

676,379

 

76.6%

 

79.3%

 

81.3%

 

78.2%

 

30

 

999 PEACHTREE

 

Atlanta, GA

 

621,946

 

84.8%

 

85.4%

 

84.6%

 

84.7%

 

31

 

1001 17th STREET

 

Denver, CO

 

655,413

 

93.2%

 

93.9%

 

97.7%

 

96.1%

 

32

 

PLAZA SEVEN

 

Minneapolis, MN

 

326,483

 

87.3%

 

86.4%

 

87.3%

 

87.3%

 

33

 

PERSHING PLAZA

 

Atlanta, GA

 

160,145

 

97.4%

 

97.4%

 

97.4%

 

97.4%

 

34

 

600 17th STREET

 

Denver, CO

 

598,630

 

85.4%

 

85.1%

 

84.5%

 

85.1%

 

 

 

TOTAL WEIGHTED AVERAGE

 

 

 

9,760,699

 

89.0%

 

88.6%

 

90.5%

 

89.7%

 


(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.   

 


 

-11-

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 total square feet:

 

As of September 30, 2018

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

% of

 

 

    

Tenant

    

Sq Ft

    

Portfolio

 

1

 

Quintiles IMS Healthcare Incorporated

 

259,531

 

2.7%

 

2

 

CITGO Petroleum Corporation

 

248,399

 

2.6%

 

3

 

Newfield Exploration Company

 

234,495

 

2.4%

 

4

 

US Government

 

223,641

 

2.3%

 

5

 

Centene Management Company, LLC

 

216,879

 

2.2%

 

6

 

Burger King Corporation

 

212,619

 

2.2%

 

7