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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):  February 12, 2019

 

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 February 12, 2019, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three and twelve months ended December 31, 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 February 12, 2019. 

 

 

 

99.2

 

Supplemental Operating and Financial Data for the Fourth 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:  February 12,  2019

By:

/s/ George J. Carter

 

 

George J. Carter

 

 

Chief Executive Officer

 

 

4


(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

Fourth Quarter / Annual 2018 Results 

And 2019 Guidance

 

Wakefield, MA—February 12,  2019—Franklin Street Properties Corp. (the “Company”, “FSP”, “we” or “our”) (NYSE American:  FSP), a real estate investment trust (REIT), announced its results for the fourth quarter and year ended December  31, 2018.         

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

“Leasing activity within our property portfolio of 32 operating and 3 redevelopment properties continued to be solid during the fourth quarter of 2018, with approximately 398,000 square feet leased during the quarter.  This leasing activity contributed to making 2018 a record year of leasing at FSP, with approximately 1,681,000 square feet leased during the year.   We also continued to see increased leasing activity in our energy-influenced markets of Houston and Denver.  The price of oil was particularly volatile over the past quarter and we believe that longer-term supply/demand pricing characteristics of that commodity will be an important factor affecting future levels of office space absorption in those markets during 2019 and 2020.

As anticipated, we did experience known and planned for tenant move outs during the fourth quarter of 2018, including Burger King at Blue Lagoon in Miami, Florida, SunTrust at Innsbrook in Glen Allen, Virginia, and Red Cross at Forest Park in Charlotte, North Carolina, which reduced overall leased occupancy in our property portfolio.

As 2019 begins, we are continuing our lease-up efforts at our approximately 130,000 square foot redevelopment property known as 801 Marquette in Minneapolis, Minnesota, which was approximately 37% leased as of December 31, 2018.  In addition, we are now redeveloping an approximately 213,000 square foot property known as Blue Lagoon in Miami, Florida and an approximately 62,000 square foot property known as Forest Park in Charlotte, North Carolina, for a total of approximately 400,000 square feet of redevelopment space in the aggregate.  Similar to 801 Marquette, prior to beginning our redevelopment efforts, both Blue Lagoon and Forest Park had been long-term leased to single-tenants.  In addition, both assets have been owned by us (or our affiliates) for in excess of 15 years, are anchored in excellent locations within their respective markets, and have generated consistently strong cash flows.  We believe that current market rents for these assets are meaningfully higher than the expiring single-tenant rents.  We also believe that our redevelopment efforts will provide us the opportunity to capture significant increased value for our shareholders through higher ongoing rental cash flows, as we seek to achieve a strong, long-term rate of return on our costs of redevelopment.  Currently, these 3 redevelopment properties contribute no material rental income to the Company.

As 2019 begins, we are optimistic about our ability to lease significant portions of our vacancy in our 32 operating properties and in our 3 redevelopment properties, and believe that successful results will mark the beginning of a longer-term, more sustainable, rise in operating performance and value creation within our property portfolio in 2020. The reduction to our dividend in 2018 allows the Company to retain more operating cash flow to fund anticipated increased leasing costs and capital expenditures during 2019 and 2020.”    

Highlights

·

Net Income was $1.4 million and $13.1 million or $0.01 and $0.12 per basic and diluted share for the fourth quarter and year ended December 31, 2018, respectively.  FFO was $24.5 million and $102.5 million or $0.23 and $0.96 per basic and diluted share for the fourth quarter and year ended December  31, 2018, respectively.        

·

Adjusted Funds From Operations (AFFO) was $0.10 and $0.47 per basic and diluted share for the fourth quarter and year ended December 31, 2018, respectively.                              

 


 

-2-

 

Leasing Update

·

Our directly owned real estate portfolio of 32 operating properties (excluding 3 redevelopment properties) totaling approximately 9.5 million square feet was approximately 89.0% leased as of December  31, 2018.            

·

During the year ended December 31, 2018, we leased approximately 1,681,000 square feet, of which approximately 397,000 was with new tenants, representing a 14% increase in leasing accomplished compared to 2017,  and a new high for the company. 

·

During the three months ended December 31, 2018, we leased approximately 398,000 square feet, of which approximately 54,000 square feet was with new tenants. 

·

The portfolio assets in our core markets of Houston and Denver improved in 2018:     

o

Our core market of Houston’s leased percentage increased to 86.0% as of December 31, 2018, up from 76.4% leased as of December 31, 2017. 

o

Our core market of Denver’s leased percentage increased to 90.7% as of December 31, 2018, up from 89.7% leased as of December 31, 2017.

 

Dividend Update

On January 11, 2019, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended December 31, 2018 of $0.09 per share of common stock that will be paid on February 14, 2019 to stockholders of record on January 25, 2019.          

 

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 December 31, 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.  

 


 

-3-

FFO Guidance

We are initiating our full year net income guidance for 2019, which is estimated to be in the range of a net loss of approximately $0.03 to net income of $0.03 per basic and diluted share, and are for the first quarter of 2019, which is estimated to be in the range of a net loss of approximately $0.02 to $0.00 per basic and diluted share.  We are initiating our full year FFO guidance for 2019, which is estimated to be in the range of approximately $0.81 to $0.87  per basic and diluted share, and for the first quarter of 2019, which is estimated to be in the range of approximately $0.19 to $0.21 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:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2019 Range

 

 

Full Year 2019 Range

 

     

Low

     

High

     

Low

     

High

Net income (loss) per share

 

$

(0.02)

 

$

 -

 

$

(0.03)

 

$

0.03

GAAP income from non-consolidated REITs

 

 

 -

 

 

 -

 

 

 -

 

 

 -

FFO from non-consolidated REITs

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Depreciation & Amortization

 

 

0.21

 

 

0.21

 

 

0.84

 

 

0.84

Funds From Operations per share

 

$

0.19

 

$

0.21

 

$

0.81

 

$

0.87

 

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 February 13, 2019 at 10:00 a.m. (ET) to discuss the fourth quarter and year end 2018 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.

 

 


 

-4-

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 operating performance, rates of return and value creation/enhancement in future periods, expectations for operating cash flow in future periods, expectations for growth, leasing and acquisition and disposition activities in future periods, including in the Denver and Houston markets, expectations regarding the timing, leasing and economic results of our redevelopment properties, 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, including the level of interest rates, 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, 2018, 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

 

Year Ended

 

 

 

December 31,

 

December 31,

 

(in thousands, except per share amounts)

  

2018

  

2017

  

2018

  

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental

 

$

65,304

 

$

65,555

 

$

263,777

 

$

267,265

 

Related party revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

Management fees and interest income from loans

 

 

1,268

 

 

1,271

 

 

5,061

 

 

5,285

 

Other

 

 

 6

 

 

 9

 

 

32

 

 

38

 

Total revenue

 

 

66,578

 

 

66,835

 

 

268,870

 

 

272,588

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate operating expenses

 

 

18,652

 

 

18,720

 

 

70,703

 

 

71,212

 

Real estate taxes and insurance

 

 

10,737

 

 

9,961

 

 

45,857

 

 

45,841

 

Depreciation and amortization

 

 

23,327

 

 

25,659

 

 

94,230

 

 

101,258

 

General and administrative

 

 

3,162

 

 

3,665

 

 

13,070

 

 

13,471

 

Interest

 

 

9,200

 

 

8,657

 

 

38,374

 

 

32,387

 

Total expenses

 

 

65,078

 

 

66,662

 

 

262,234

 

 

264,169

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

1,500

 

 

173

 

 

6,636

 

 

8,419

 

Equity in income (loss) of non-consolidated REITs

 

 

 —

 

 

(2,885)

 

 

6,793

 

 

(3,604)

 

Other

 

 

 —

 

 

(2,096)

 

 

 —

 

 

(1,878)

 

Gain (loss) on sale of properties and properties held for sale

 

 

 —

 

 

(21)

 

 

 —

 

 

(18,481)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before taxes on income

 

 

1,500

 

 

(4,829)

 

 

13,429

 

 

(15,544)

 

Taxes on income

 

 

129

 

 

103

 

 

360

 

 

400

 

Net income (loss)

 

$

1,371

 

$

(4,932)

 

$

13,069

 

$

(15,944)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

0.01

 

$

(0.05)

 

$

0.12

 

$

(0.15)

 

 


 

-6-

Franklin Street Properties Corp. Financial Results

Supplementary Schedule B

Condensed Consolidated Balance Sheets

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

December 31,

 

(in thousands, except share and par value amounts)

    

2018

    

2017

 

Assets:

 

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

 

Land

 

$

191,578

 

$

191,578

 

Buildings and improvements

 

 

1,857,935

 

 

1,811,631

 

Fixtures and equipment

 

 

8,839

 

 

5,614

 

 

 

 

2,058,352

 

 

2,008,823

 

Less accumulated depreciation

 

 

432,579

 

 

376,131

 

Real estate assets, net

 

 

1,625,773

 

 

1,632,692

 

Acquired real estate leases, less accumulated amortization of $101,897 and $109,771, respectively

 

 

59,595

 

 

86,520

 

Investment in non-consolidated REITs

 

 

 —

 

 

70,164

 

Cash, cash equivalents and restricted cash

 

 

11,177

 

 

9,819

 

Tenant rent receivables, less allowance for doubtful accounts of $200 and $250, respectively

 

 

3,938

 

 

3,123

 

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

 

 

54,006

 

 

53,194

 

Prepaid expenses and other assets

 

 

10,400

 

 

8,387

 

Related party mortgage loan receivables

 

 

70,660

 

 

71,720

 

Other assets: derivative asset

 

 

14,765

 

 

13,925

 

Office computers and furniture, net of accumulated depreciation of $1,512 and $1,420, respectively

 

 

197

 

 

289

 

Deferred leasing commissions, net of accumulated amortization of $24,318 and $22,276, respectively

 

 

47,591

 

 

40,679

 

Total assets

 

$

1,898,102

 

$

1,990,512

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Bank note payable

 

$

25,000

 

$

78,000

 

Term loans payable, less unamortized financing costs of $5,722 and $5,099, respectively

 

 

764,278

 

 

764,901

 

Series A & Series B Senior Notes, less unamortized financing costs of $1,150 and $1,308, respectively

 

 

198,850

 

 

198,692

 

Accounts payable and accrued expenses

 

 

59,183

 

 

61,039

 

Accrued compensation

 

 

3,043

 

 

3,641

 

Tenant security deposits

 

 

6,319

 

 

5,383

 

Other liabilities: derivative liabilities

 

 

 —

 

 

1,759

 

Acquired unfavorable real estate leases, less accumulated amortization of $6,605 and $7,638, respectively

 

 

3,795

 

 

5,805

 

Total liabilities

 

 

1,060,468

 

 

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

 

 

14,765

 

 

12,166

 

Accumulated distributions in excess of accumulated earnings

 

 

(533,599)

 

 

(497,342)

 

Total stockholders’ equity

 

 

837,634

 

 

871,292

 

Total liabilities and stockholders’ equity

 

$

1,898,102

 

$

1,990,512

 

 

 

 

 

 

 

 

 

 


 

-7-

Franklin Street Properties Corp. Financial Results

Supplementary Schedule C

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

For the

 

 

 

Year Ended

 

 

 

December 31,

 

(in thousands)

    

2018

    

2017

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

 

$

13,069

 

$

(15,944)

 

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

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

97,171

 

 

103,743

 

Amortization of above and below market leases

 

 

(556)

 

 

(1,031)

 

Equity in (income) loss of non-consolidated REITs

 

 

(6,793)

 

 

3,604

 

Hedge ineffectiveness

 

 

 —

 

 

1,878

 

Loss on sale of properties and properties held for sale

 

 

 —

 

 

18,481

 

Increase (decrease) in allowance for doubtful accounts

 

 

(50)

 

 

150

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Tenant rent receivables

 

 

(765)

 

 

(160)

 

Straight-line rents

 

 

381

 

 

(1,767)

 

Lease acquisition costs

 

 

(1,193)

 

 

(2,052)

 

Prepaid expenses and other assets

 

 

(1,940)

 

 

(403)

 

Accounts payable and accrued expenses

 

 

(4,077)

 

 

3,870

 

Accrued compensation

 

 

(598)

 

 

(143)

 

Tenant security deposits

 

 

936

 

 

28

 

Payment of deferred leasing commissions

 

 

(15,383)

 

 

(14,309)

 

Net cash provided by operating activities

 

 

80,202

 

 

95,945

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Property improvements, fixtures and equipment

 

 

(51,057)

 

 

(54,187)

 

Office computers and furniture

 

 

 —

 

 

(119)

 

Investment in non-consolidated REITs

 

 

74,931

 

 

 —

 

Distributions in excess of earnings from non-consolidated REITs

 

 

710

 

 

1,396

 

Repayment of related party mortgage loan receivable

 

 

1,060

 

 

10,060

 

Proceeds received on sales of real estate assets

 

 

 —

 

 

37,756

 

Net cash provided by (used in) investing activities

 

 

25,644

 

 

(5,094)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Distributions to stockholders

 

 

(49,326)

 

 

(81,496)

 

Borrowings under bank note payable

 

 

38,000

 

 

75,000

 

Repayments of bank note payable

 

 

(91,000)

 

 

(277,000)

 

Borrowing of Series A & Series B Senior Notes

 

 

 —

 

 

200,000

 

Deferred financing costs

 

 

(2,162)

 

 

(6,902)

 

Net cash used in financing activities

 

 

(104,488)

 

 

(90,398)

 

Net increase in cash, cash equivalents and restricted cash

 

 

1,358

 

 

453

 

Cash, cash equivalents and restricted cash, beginning of year

 

 

9,819

 

 

9,366

 

Cash, cash equivalents and restricted cash, end of period

 

$

11,177

 

$

9,819

 


 

-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

 

2019

 

854,888

 

8.6%

 

2020

 

1,072,050

 

10.8%

 

2021

 

691,623

 

7.0%

 

2022

 

1,206,763

 

12.2%

 

2023

 

776,188

 

7.9%

 

Thereafter (2)

 

5,289,790

 

53.5%

 

 

 

9,891,302

 

100.0%

 


(1)

Percentages are determined based upon total square footage.   

(2)

Includes 1,046,853 square feet of current vacancies at our operating properties and 294,421 square feet of current vacancies at our redevelopment properties. We define redevelopment properties as properties being developed, redeveloped or where development/redevelopment is complete but that are not yet stabilized. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars & square feet in 000's)

 

As of December 31, 2018 (a)

 

 

 

# of

 

 

 

 

% of

 

Square

 

% of

 

State

    

Properties

    

Investment

    

Portfolio

    

Feet

    

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado

 

 6

 

$

537,998

 

33.1%

 

2,609

 

26.4%

 

Texas

 

 9

 

 

348,404

 

21.4%

 

2,417

 

24.4%

 

Georgia

 

 5

 

 

322,698

 

19.9%

 

1,967

 

19.9%

 

Minnesota

 

 3

 

 

118,871

 

7.3%

 

750

 

7.6%

 

Virginia

 

 4

 

 

82,920

 

5.1%

 

685

 

6.9%

 

North Carolina

 

 2

 

 

50,592

 

3.1%

 

322

 

3.2%

 

Missouri

 

 2

 

 

47,292

 

2.9%

 

351

 

3.6%

 

Illinois

 

 2

 

 

48,731

 

3.0%

 

372

 

3.8%

 

Florida

 

 1

 

 

38,432

 

2.4%

 

213

 

2.2%

 

Indiana

 

 1

 

 

29,835

 

1.8%

 

205

 

2.0%

 

Total

 

35

 

$

1,625,773

 

100.0%

 

9,891

 

100.0%

 

 

(a)

Includes investment in our redevelopment properties.  We define redevelopment properties as properties being developed, redeveloped or where complete, but that are not yet stabilized. 


 

-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

 

Year Ended

 

 

    

31-Mar-18

    

30-Jun-18

    

30-Sep-18

    

31-Dec-18

    

31-Dec-18

 

Tenant improvements

 

$

6,777

 

$

8,212

 

$

7,084

 

$

6,895

 

$

28,968

 

Deferred leasing costs

 

 

1,021

 

 

5,314

 

 

4,394

 

 

3,746

 

 

14,475

 

Non-investment capex

 

 

1,858

 

 

2,558

 

 

2,328

 

 

3,342

 

 

10,086

 

 

 

$

9,656

 

$

16,084

 

$

13,806

 

$

13,983

 

$

53,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

December 31,

 

December 31,

 

 

    

2018

    

2017

 

Operating Properties (a):

 

 

 

 

 

Number of properties

 

32

 

34

 

Square feet

 

9,486,650

 

9,761,984

 

Leased percentage

 

89.0%

 

89.7%

 

 

 

 

 

 

 

Redevelopment Properties:

 

 

 

 

 

Number of properties

 

 3

 

 1

 

Square feet

 

404,652

 

129,821

 

Leased percentage

 

27.2%

 

1.9%

 

 

 

 

 

 

 

Managed Properties - Single Asset REITs (SARs):

 

 

 

 

 

Number of properties

 

 3

 

 4

 

Square feet

 

674,342

 

810,278

 

 

 

 

 

 

 

Total Operating, Redevelopment and Managed Properties:

 

 

 

 

 

Number of properties

 

38

 

39

 

Square feet

 

10,565,644

 

10,702,083

 

 

(a)

Excludes investment in our redevelopment properties.  We define redevelopment properties as properties being developed, redeveloped or where development/redevelopment is complete but that are not yet stabilized. 

 

 

 


 

-10-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule F

Percentage of Leased Space

(Unaudited & Estimated)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third

 

 

 

Fourth

 

 

 

 

 

 

 

 

 

% Leased (1)

 

Quarter

 

% Leased (1)

 

Quarter

 

 

 

 

 

 

 

 

 

as of

 

Average %

 

as of

 

Average %

 

 

    

Property Name

    

Location

    

Square Feet

    

30-Sep-18

    

Leased (2)

    

31-Dec-18

    

Leased (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FOREST PARK (3)

 

Charlotte, NC

 

 —

 

100.0%

 

100.0%

 

Note (3)

 

Note (3)

 

1

 

MEADOW POINT

 

Chantilly, VA

 

138,537

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

2

 

TIMBERLAKE

 

Chesterfield, MO

 

234,496

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

3

 

TIMBERLAKE EAST

 

Chesterfield, MO

 

117,036

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

4

 

NORTHWEST POINT

 

Elk Grove Village, IL

 

177,095

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

5

 

PARK TEN

 

Houston, TX

 

157,460

 

89.5%

 

89.5%

 

89.5%

 

89.5%

 

6

 

PARK TEN PHASE II

 

Houston, TX

 

156,746

 

59.7%

 

34.6%

 

65.5%

 

65.5%

 

7

 

GREENWOOD PLAZA

 

Englewood, CO

 

196,236

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

8

 

ADDISON

 

Addison, TX

 

289,302

 

100.0%

 

100.0%

 

89.3%

 

80.4%

 

9

 

COLLINS CROSSING

 

Richardson, TX

 

300,887

 

100.0%

 

100.0%

 

99.4%

 

99.4%

 

10

 

INNSBROOK

 

Glen Allen, VA

 

298,456

 

100.0%

 

100.0%

 

57.3%

 

57.3%

 

11

 

RIVER CROSSING

 

Indianapolis, IN

 

205,059

 

94.9%

 

94.9%

 

94.2%

 

94.7%

 

12

 

LIBERTY PLAZA

 

Addison, TX

 

218,934

 

80.8%

 

80.3%

 

80.4%

 

80.7%

 

13

 

380 INTERLOCKEN

 

Broomfield, CO

 

240,358

 

86.2%

 

86.2%

 

93.4%

 

93.4%

 

14

 

390 INTERLOCKEN

 

Broomfield, CO

 

241,512

 

98.2%

 

98.4%

 

98.2%

 

98.2%

 

 

 

BLUE LAGOON (3)

 

Miami, FL

 

 —

 

100.0%

 

100.0%

 

Note (3)

 

Note (3)

 

15

 

ELDRIDGE GREEN

 

Houston, TX

 

248,399

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

16

 

ONE OVERTON PARK

 

Atlanta, GA

 

387,267

 

79.7%

 

79.5%

 

79.7%

 

79.7%

 

17

 

LOUDOUN TECH

 

Dulles, VA

 

136,658

 

95.7%

 

95.7%

 

95.7%

 

95.7%

 

18

 

4807 STONECROFT

 

Chantilly, VA

 

111,469

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

19

 

121 SOUTH EIGHTH ST

 

Minneapolis, MN

 

293,460

 

80.4%

 

79.1%

 

80.1%

 

80.2%

 

20

 

EMPEROR BOULEVARD

 

Durham, NC

 

259,531

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

21

 

LEGACY TENNYSON CTR

 

Plano, TX

 

202,600

 

90.4%

 

87.7%

 

90.4%

 

90.4%

 

22

 

ONE LEGACY

 

Plano, TX

 

214,110

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

23

 

909 DAVIS

 

Evanston, IL

 

195,098

 

97.8%

 

97.8%

 

97.8%

 

97.8%

 

24

 

ONE RAVINIA DRIVE

 

Atlanta, GA

 

386,602

 

91.3%

 

91.3%

 

92.3%

 

91.6%

 

25

 

TWO RAVINIA

 

Atlanta, GA

 

411,047

 

78.2%

 

77.7%

 

78.5%

 

78.4%

 

26

 

WESTCHASE I & II

 

Houston, TX

 

629,025

 

84.5%

 

85.8%

 

84.7%

 

84.8%

 

27

 

1999 BROADWAY

 

Denver, CO

 

676,379

 

81.3%

 

78.2%

 

81.8%

 

82.0%

 

28

 

999 PEACHTREE

 

Atlanta, GA

 

621,946

 

84.6%

 

84.7%

 

84.6%

 

84.6%

 

29

 

1001 17th STREET

 

Denver, CO

 

655,413

 

97.7%

 

96.1%

 

97.7%

 

97.7%

 

30

 

PLAZA SEVEN

 

Minneapolis, MN

 

326,757

 

87.3%

 

87.3%

 

88.2%

 

87.9%

 

31

 

PERSHING PLAZA

 

Atlanta, GA

 

160,145

 

97.4%

 

97.4%

 

97.4%

 

97.4%

 

32

 

600 17th STREET

 

Denver, CO

 

598,630

 

84.5%

 

85.1%

 

86.0%

 

85.5%

 

 

 

OPERATING TOTAL

 

 

 

9,486,650

 

90.5%

 

89.7%

 

89.0%

 

88.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

 

FOREST PARK

 

Charlotte, NC

 

62,212

 

 —

 

 —

 

100.0%

 

100.0%

 

34

 

BLUE LAGOON

 

Miami, FL

 

212,619

 

 —

 

 —

 

0.0%

 

66.7%

 

35

 

801 MARQUETTE AVE

 

Minneapolis, MN

 

129,821

 

15.8%

 

15.8%

 

37.0%

 

29.9%

 

 

 

REDEVELOPMENT TOTAL

 

 

 

404,652

 

15.8%

 

15.8%

 

27.2%

 

60.0%