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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):  April 30, 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 April 30, 2019, Franklin Street Properties Corp. (the “Registrant”) announced its financial results for the three months ended March 31, 2019.  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 April 30, 2019. 

 

 

 

99.2

 

Supplemental Operating and Financial Data for the First Quarter of 2019.

 

 

 

 

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:  April 30,  2019

By:

/s/ George J. Carter

 

 

George J. Carter

 

 

Chief Executive Officer

 

 

4


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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

First Quarter 2019 Results

 

Wakefield, MA—April 30,  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 first quarter ended March 31, 2019.         

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 at a strong pace during the first quarter of 2019, setting an FSP record for the amount of first quarter square footage leased.  In addition, the price of crude oil increased during the first quarter of 2019 and we believe that a continuation of this trend could provide support to many businesses and their expansion plans within our energy-influenced markets of Houston and Denver.  Prospective new tenant activity at our 3 redevelopment properties located in Miami, Minneapolis and Charlotte was robust during the first quarter of 2019.  We expect to make meaningful leasing progress with these assets during the remainder of 2019.   With over $568 million of available capital liquidity as of March 31, 2019, we are confident that we have the financial resources needed to maximize our leasing and redevelopment value-add opportunities.”    

Highlights

·

Net Loss was $1.2 million or $0.01 per basic and diluted share for the first quarter ended March 31, 2019.  Funds From Operations (FFO)  was $22.1 million or $0.21 per basic and diluted share for the first quarter ended March 31, 2019.        

·

Adjusted Funds From Operations (AFFO) was $0.06 per basic and diluted share for the first quarter ended March 31, 2019.

·

During the first quarter ended March 31, 2019, we effectively fixed interest rates on two of our term loans via interest rate swap transactions.  As of March 31, 2019, approximately 91% of our indebtedness had fixed interest rates or were effectively fixed via interest rate swap transactions.  As of March 31, 2019, the 30-Day LIBOR rate was approximately 2.49% and all of the base LIBOR rates that we fixed via interest rate swap transactions were below the 30-day LIBOR rate.        

o

On February 20, 2019, we executed interest rate swap transactions that fixed the base LIBOR rate on both tranches of our $220 million term loan with Bank of Montreal as administrative agent at 2.385% per annum from August 26, 2020 until the loan matures on January 31, 2024. 

o

On March 7, 2019, we executed interest rate swap transactions that fixed the base LIBOR-based rate on a $100 million portion of our $150 million term loan with JPMorgan Chase Bank, N.A. as administrative agent at 2.44% per annum from March 29, 2019 until the loan matures on November 30, 2021.                  

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 88.5% leased as of March 31, 2019.            

·

During the quarter ended March 31, 2019, we leased approximately 460,000 square feet, of which approximately 95,000 was with new tenants.  The leasing total represents a first quarter record high for FSP, the average first quarter leasing total for the prior five years was approximately 176,000 square feet.    

·

The weighted average GAAP base rent achieved on leasing activity during the first quarter was $32.32 per square foot and the portfolio weighted average rent per occupied square foot increased from $29.01 as of December 31, 2018 to $29.60  as of March 31, 2019.   

 


 

-2-

Dividend Update

On April 5, 2019, the Company announced that its Board of Directors declared a regular quarterly cash dividend for the three months ended March 31, 2019 of $0.09 per share of common stock that will be paid on May 9, 2019 to stockholders of record on April 19, 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 March 31, 2019.  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.  

 

 

FFO Guidance

We are maintaining our full year net income or loss 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 introducing guidance for the second quarter of 2019, which is estimated to be in the range of a  net loss approximately $0.02 to $0.00 per basic and diluted share.  We are maintaining 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 introducing guidance for the second 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:  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q2 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

 


 

-3-

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 May 1, 2019 at 11:00 a.m. (ET) to discuss the first quarter 2019 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 infill and central business district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets.  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.

 

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, expectations for crude oil prices and their impact on the Houston and Denver markets in future periods,  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, 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. 

 

 

 


 

-4-

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

 

 

 

Three Months Ended

 

 

 

March 31,

 

(in thousands, except per share amounts)

  

2019

  

2018

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

Rental

 

$

63,359

 

$

65,628

 

Related party revenue:

 

 

 

 

 

 

 

Management fees and interest income from loans

 

 

1,352

 

 

1,256

 

Other

 

 

 5

 

 

 9

 

Total revenue

 

 

64,716

 

 

66,893

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

Real estate operating expenses

 

 

17,726

 

 

17,151

 

Real estate taxes and insurance

 

 

12,102

 

 

11,177

 

Depreciation and amortization

 

 

23,245

 

 

24,035

 

General and administrative

 

 

3,509

 

 

3,432

 

Interest

 

 

9,368

 

 

9,486

 

Total expenses

 

 

65,950

 

 

65,281

 

 

 

 

 

 

 

 

 

Income (loss) before taxes on income and equity in
income (loss) of non-consolidated REITs

 

 

(1,234)

 

 

1,612

 

Tax expense (benefit) on income (loss)

 

 

(29)

 

 

82

 

Equity in loss of non-consolidated REITs

 

 

 —

 

 

(105)

 

Net income (loss)

 

$

(1,205)

 

$

1,425

 

 

 

 

 

 

 

 

 

Weighted average number of shares outstanding,  basic and diluted

 

 

107,231

 

 

107,231

 

 

 

 

 

 

 

 

 

Net income (loss) per share, basic and diluted

 

$

(0.01)

 

$

0.01

 

 


 

-6-

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)

    

2019

    

2018

 

Assets:

 

 

 

 

 

 

 

Real estate assets:

 

 

 

 

 

 

 

Land

 

$

191,578

 

$

191,578

 

Buildings and improvements

 

 

1,872,082

 

 

1,857,935

 

Fixtures and equipment

 

 

9,153

 

 

8,839

 

 

 

 

2,072,813

 

 

2,058,352

 

Less accumulated depreciation

 

 

447,980

 

 

432,579

 

Real estate assets, net

 

 

1,624,833

 

 

1,625,773

 

Acquired real estate leases, less accumulated amortization of $74,681 and $101,897, respectively

 

 

53,948

 

 

59,595

 

Cash, cash equivalents and restricted cash

 

 

8,832

 

 

11,177

 

Tenant rent receivables

 

 

4,489

 

 

3,938

 

Straight-line rent receivable

 

 

55,836

 

 

54,006

 

Prepaid expenses and other assets

 

 

10,469

 

 

10,400

 

Related party mortgage loan receivables

 

 

72,795

 

 

70,660

 

Other assets: derivative asset

 

 

10,469

 

 

14,765

 

Office computers and furniture, net of accumulated depreciation of $1,410 and $1,512, respectively

 

 

166

 

 

197

 

Deferred leasing commissions, net of accumulated amortization of $25,249 and $24,318, respectively

 

 

49,408

 

 

47,591

 

Total assets

 

$

1,891,245

 

$

1,898,102

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

Bank note payable

 

$

40,000

 

$

25,000

 

Term loans payable, less unamortized financing costs of $5,358 and $5,722, respectively

 

 

764,642

 

 

764,278

 

Series A & Series B Senior Notes, less unamortized financing costs of $1,108 and $1,150, respectively

 

 

198,892

 

 

198,850

 

Accounts payable and accrued expenses

 

 

52,248

 

 

59,183

 

Accrued compensation

 

 

1,073

 

 

3,043

 

Tenant security deposits

 

 

6,352

 

 

6,319

 

Lease liability

 

 

2,141

 

 

 —

 

Other liabilities: derivative liabilities

 

 

2,496

 

 

 —

 

Acquired unfavorable real estate leases, less accumulated amortization of $5,144 and $6,605, respectively

 

 

3,414

 

 

3,795

 

Total liabilities

 

 

1,071,258

 

 

1,060,468

 

 

 

 

 

 

 

 

 

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 income

 

 

7,973

 

 

14,765

 

Accumulated distributions in excess of accumulated earnings

 

 

(544,454)

 

 

(533,599)

 

Total stockholders’ equity

 

 

819,987

 

 

837,634

 

Total liabilities and stockholders’ equity

 

$

1,891,245

 

$

1,898,102

 

 

 

 

 

 

 

 

 

 


 

-7-

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)

    

2019

    

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

 

$

(1,205)

 

$

1,425

 

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

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

23,962

 

 

24,748

 

Amortization of above and below market leases

 

 

(112)

 

 

(85)

 

Equity in (income) loss of non-consolidated REITs

 

 

 —

 

 

105

 

Increase (decrease) in allowance for doubtful accounts
and write-off of accounts receivable

 

 

(60)

 

 

75

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

Tenant rent receivables

 

 

(491)

 

 

(363)

 

Straight-line rents

 

 

(1,140)

 

 

40

 

Lease acquisition costs

 

 

(689)

 

 

(276)

 

Prepaid expenses and other assets

 

 

1,497

 

 

(274)

 

Accounts payable and accrued expenses

 

 

(6,101)

 

 

(6,911)

 

Accrued compensation

 

 

(1,970)

 

 

(2,529)

 

Tenant security deposits

 

 

33

 

 

205

 

Payment of deferred leasing commissions

 

 

(4,242)

 

 

(1,082)

 

Net cash provided by operating activities

 

 

9,482

 

 

15,078

 

Cash flows from investing activities:

 

 

 

 

 

 

 

Property improvements, fixtures and equipment

 

 

(15,223)

 

 

(10,774)

 

Distributions in excess of earnings from non-consolidated REITs

 

 

 -

 

 

355

 

Repayment of related party mortgage loan receivable

 

 

265

 

 

265

 

Investment in related party mortgage loan receivable

 

 

(2,400)

 

 

 —

 

Proceeds received from liquidating trust

 

 

263

 

 

 —

 

Net cash used in investing activities

 

 

(17,095)

 

 

(10,154)

 

Cash flows from financing activities:

 

 

 

 

 

 

 

Distributions to stockholders

 

 

(9,651)

 

 

(20,374)

 

Borrowings under bank note payable

 

 

30,000

 

 

30,000

 

Repayments of bank note payable

 

 

(15,000)

 

 

(10,000)

 

Deferred financing costs

 

 

(81)

 

 

(14)

 

Net cash provided by (used in) financing activities

 

 

5,268

 

 

(388)

 

Net increase (decrease) in cash, cash equivalents and restricted cash

 

 

(2,345)

 

 

4,536

 

Cash, cash equivalents and restricted cash, beginning of year

 

 

11,177

 

 

9,819

 

Cash, cash equivalents and restricted cash, end of period

 

$

8,832

 

$

14,355

 


 

-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

 

638,664

 

6.4%

 

2020

 

922,396

 

9.3%

 

2021

 

674,792

 

6.8%

 

2022

 

1,200,710

 

12.1%

 

2023

 

664,600

 

6.7%

 

Thereafter (2)

 

5,798,608

 

58.7%

 

 

 

9,899,770

 

100.0%

 


(1)

Percentages are determined based upon total square footage.   

(2)

Includes 1,089,027 square feet of current vacancies at our operating properties and 356,633 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 March 31, 2019 (a)

 

 

 

# of

 

 

 

 

% of

 

Square

 

% of

 

State

    

Properties

    

Investment

    

Portfolio

    

Feet

    

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado

 

 6

 

$

541,172

 

33.3%

 

2,620

 

26.5%

 

Texas

 

 9

 

 

345,804

 

21.3%

 

2,415

 

24.4%

 

Georgia

 

 5

 

 

321,790

 

19.8%

 

1,967

 

19.9%

 

Minnesota

 

 3

 

 

118,953

 

7.3%

 

750

 

7.6%

 

Virginia

 

 4

 

 

82,062

 

5.0%

 

685

 

6.9%

 

North Carolina

 

 2

 

 

50,177

 

3.1%

 

322

 

3.2%

 

Missouri

 

 2

 

 

46,543

 

2.9%

 

351

 

3.5%

 

Illinois

 

 2

 

 

48,483

 

3.0%

 

372

 

3.8%

 

Florida

 

 1

 

 

40,343

 

2.5%

 

213

 

2.1%

 

Indiana

 

 1

 

 

29,506

 

1.8%

 

205

 

2.1%

 

Total

 

35

 

$

1,624,833

 

100.0%

 

9,900

 

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

 

 

    

31-Mar-19

 

Tenant improvements

 

$

8,318

 

Deferred leasing costs

 

 

4,239

 

Non-investment capex

 

 

2,413

 

 

 

$

14,970

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

Square foot & leased percentages

 

March 31,

 

December 31,

 

 

    

2019

    

2018

 

Operating Properties (a):

 

 

 

 

 

Number of properties

 

32

 

32

 

Square feet

 

9,495,118

 

9,486,650

 

Leased percentage

 

88.5%

 

89.0%

 

 

 

 

 

 

 

Redevelopment Properties:

 

 

 

 

 

Number of properties

 

 3

 

 3

 

Square feet

 

404,652

 

404,652

 

Leased percentage

 

11.9%

 

27.2%

 

 

 

 

 

 

 

Managed Properties - Single Asset REITs (SARs):

 

 

 

 

 

Number of properties

 

 3

 

 3

 

Square feet

 

674,342

 

674,342

 

 

 

 

 

 

 

Total Operating, Redevelopment and Managed Properties:

 

 

 

 

 

Number of properties

 

38

 

38

 

Square feet

 

10,574,112

 

10,565,644

 

 

(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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth

 

 

 

First

 

 

 

 

 

 

 

 

 

% Leased (1)

 

Quarter

 

% Leased (1)

 

Quarter

 

 

 

 

 

 

 

 

 

as of

 

Average %

 

as of

 

Average %

 

 

    

Property Name

    

Location

    

Square Feet

    

31-Dec-18

    

Leased (2)

    

31-Mar-19

    

Leased (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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%

 

96.4%

 

95.1%

 

6

 

PARK TEN PHASE II

 

Houston, TX

 

156,746

 

65.5%

 

65.5%

 

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

 

89.3%

 

80.4%

 

89.3%

 

89.3%

 

9

 

COLLINS CROSSING

 

Richardson, TX

 

300,887

 

99.4%

 

99.4%

 

99.4%

 

99.4%

 

10

 

INNSBROOK

 

Glen Allen, VA

 

298,456

 

57.3%

 

57.3%

 

57.3%

 

57.3%

 

11

 

RIVER CROSSING

 

Indianapolis, IN

 

205,059

 

94.2%

 

94.7%

 

95.0%

 

94.5%

 

12

 

LIBERTY PLAZA

 

Addison, TX

 

216,851

 

80.4%

 

80.7%

 

74.5%

 

78.7%

 

13

 

380 INTERLOCKEN

 

Broomfield, CO

 

240,358

 

93.4%

 

93.4%

 

90.5%

 

91.5%

 

14

 

390 INTERLOCKEN

 

Broomfield, CO

 

241,512

 

98.2%

 

98.2%

 

98.2%

 

98.2%

 

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%

 

79.7%

 

80.1%

 

79.8%

 

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

 

80.1%

 

80.2%

 

80.9%

 

80.9%

 

20

 

EMPEROR BOULEVARD

 

Durham, NC

 

259,531

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

21

 

LEGACY TENNYSON CTR

 

Plano, TX

 

202,049

 

90.4%

 

90.4%

 

91.4%

 

90.9%

 

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%

 

91.2%

 

91.2%

 

24

 

ONE RAVINIA DRIVE

 

Atlanta, GA

 

386,602

 

92.3%

 

91.6%

 

89.7%

 

91.7%

 

25

 

TWO RAVINIA

 

Atlanta, GA

 

411,047

 

78.5%

 

78.4%

 

78.4%

 

77.4%

 

26

 

WESTCHASE I & II

 

Houston, TX

 

629,025

 

84.7%

 

84.8%

 

80.1%

 

82.2%

 

27

 

1999 BROADWAY

 

Denver, CO

 

677,378

 

81.8%

 

82.0%

 

77.1%

 

76.6%

 

28

 

999 PEACHTREE

 

Atlanta, GA

 

621,946

 

84.6%

 

84.6%

 

90.7%

 

87.0%

 

29

 

1001 17th STREET

 

Denver, CO

 

655,413

 

97.7%

 

97.7%

 

98.5%

 

98.2%

 

30

 

PLAZA SEVEN

 

Minneapolis, MN

 

326,757

 

88.2%

 

87.9%

 

87.4%

 

87.6%

 

31

 

PERSHING PLAZA

 

Atlanta, GA

 

160,145

 

97.4%

 

97.4%

 

97.4%

 

97.4%

 

32

 

600 17th STREET

 

Denver, CO

 

608,733

 

86.0%

 

85.5%

 

86.7%

 

85.9%

 

 

 

OPERATING TOTAL

 

 

 

9,495,118

 

89.0%

 

88.9%

 

88.5%

 

88.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33

 

FOREST PARK

 

Charlotte, NC

 

62,212

 

100.0%

 

100.0%

 

0.0%

 

0.0%

 

34

 

BLUE LAGOON

 

Miami, FL

 

212,619

 

0.0%

 

66.7%

 

0.0%

 

0.0%

 

35

 

801 MARQUETTE AVE

 

Minneapolis, MN

 

129,821

 

37.0%

 

29.9%

 

37.0%

 

37.0%

 

 

 

REDEVELOPMENT TOTAL

 

 

 

404,652

 

27.2%

 

60.0%

 

11.9%

 

11.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OWNED PORTFOLIO TOTAL

 

 

 

9,899,770

 

 

 

 

 

 

 

 

 


(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 March 31, 2019

 

 

 

 

 

 

 

 

 

 

 

   

 

 

 

% of

 

 

    

Tenant

    

Sq Ft

    

Portfolio

 

1

 

IQVIA Holdings Inc.

 

259,531

 

2.6%

 

2

 

CITGO Petroleum Corporation

 

248,399

 

2.5%

 

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

 

Eversheds Sutherland (US) LLP

 

179,868

 

1.8%

 

7

 

EOG Resources, Inc.

 

169,167

 

1.7%

 

8

 

The Vail Corporation

 

164,636

 

1.7%

 

9

 

T-Mobile South, LLC dba T-Mobile

 

151,792

 

1.5%

 

10

 

Citicorp Credit Services, Inc.

 

146,260

 

1.5%

 

11

 

Petrobras America, Inc.

 

144,813

 

1.5%

 

12

 

Jones Day

 

140,342

 

1.4%

 

13

 

Argo Data Resource Corporation

 

140,246

 

1.4%

 

14

 

Worldventures Holdings, LLC

 

129,998

 

1.3%

 

15

 

Kaiser Foundation Health Plan

 

120,979

 

1.2%

 

16

 

VMWare, Inc.

 

119,558

 

1.2%

 

17

 

Giesecke & Devrient America

 

112,110

 

1.1%

 

18

 

Northrop Grumman Systems Corp.

 

111,469

 

1.1%

 

19

 

Randstad General Partner (US)

 

109,638

 

1.1%

 

20

 

ADS Alliance Data Systems, Inc.

 

107,698

 

1.1%

 

 

 

Total

 

3,231,519

 

32.6%

 

 


 

-12-

Franklin Street Properties Corp. Earnings Release

Supplementary Schedule H

Reconciliation and Definitions of Funds From Operations (“FFO”) and

Adjusted Funds From Operations (“AFFO”)

 

A reconciliation of Net income (loss) to FFO and AFFO is shown below and a definition of FFO and AFFO is provided on Supplementary Schedule I.  Management believes FFO and AFFO are used broadly throughout the real estate investment trust (REIT) industry as measurements of performance.   The Company has included the National Association of Real Estate Investment Trusts (NAREIT) FFO definition as of May 17, 2016 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 and AFFO may not be comparable to FFO or AFFO reported by other REITs or real estate companies that define FFO or AFFO differently. 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Net Income (Loss) to FFO and AFFO:

 

Three Months Ended

 

 

 

 

March 31,

 

 

(In thousands, except per share amounts)

   

2019

   

2018

   

   

Net income (loss)

 

$

(1,205)

 

$

1,425

 

 

GAAP (income) loss from non-consolidated REITs

 

 

 —

 

 

105

 

 

FFO from non-consolidated REITs

 

 

 —

 

 

884

 

 

Depreciation & amortization

 

 

23,133

 

 

23,950

 

 

NAREIT FFO

 

 

21,928

 

 

26,364

 

 

Lease Acquisition costs

 

 

182

 

 

 —

 

 

Funds From Operations (FFO)

 

$

22,110

 

$

26,364

 

 

 

 

 

 

 

 

 

 

 

Funds From Operations (FFO)

 

$

22,110

 

$

26,364

 

 

Reverse FFO from non-consolidated REITs

 

 

 —

 

 

(884)

 

 

Distributions from non-consolidated REITs

 

 

 —

 

 

355

 

 

Amortization of deferred financing costs

 

 

717

 

 

711

 

 

Straight-line rent