Franklin Street Properties Corp.
Supplemental Operating & Financial Data
401 Edgewater Place ~Wakefield, MA 01880
781.557.1300.~ www.fspreit.com
First Quarter 2021
Table of Contents
Page | Page | |||
Company Information | 3 | Tenant Analysis and Leasing Activity | ||
Tenants by Industry | 18 | |||
Key Financial Data | 20 Largest Tenants with Annualized Rent and Remaining Term | 19-20 | ||
Financial Highlights | 4 | Leasing Activity | 21 | |
Income Statements | 5 | Lease Expirations by Square Feet | 22 | |
Balance Sheets | 6 | Lease Expirations with Annualized Rent per Square Foot | 23 | |
Cash Flow Statements | 7 | Redevelopment Activity | 24 | |
Property Net Operating Income (NOI) | 8 | Capital Expenditures | 25 | |
Reconciliation | Transaction Activity | 26 | ||
FFO & AFFO | 9 | |||
EBITDA | 10 | Loan Portfolio of Secured Real Estate | 27 | |
Property NOI | 11 | |||
Net Asset Value Components | 28 | |||
Debt Summary | 12 | |||
Appendix: Non-GAAP Financial Measures Definitions | ||||
Capital Analysis | 13 | FFO | 29 | |
EBITDA and NOI | 30 | |||
Owned and Managed Portfolio Overview | 14-17 | AFFO | 31 |
All financial information contained in this supplemental information package is unaudited. In addition, certain statements contained in this supplemental information package may be deemed to be forward-looking statements within the meaning of the federal securities laws. Although FSP believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Factors that could cause actual results to differ materially from FSP's current expectations include adverse changes in general economic or local market conditions, including as a result of the COVID-19 pandemic and other potential infectious disease outbreaks and terrorist attacks or other acts of violence, which may negatively affect the markets in which we and our tenants operate, increasing 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, adverse changes in energy prices, which if sustained, could negatively impact occupancy and rental rates in the markets in which we own properties, including energy-influenced markets such as Dallas, Denver and Houston, any inability to dispose of properties on acceptable terms and any delays in the timing of any such anticipated dispositions, 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 increases in construction costs, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. FSP assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.
Dominion Towers, Denver, CO
March 31, 2021| Page 2
Company Information
Overview | Snapshot (as of March 31, 2021) | ||
Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on infill and central business | Corporate Headquarters | Wakefield, MA | |
Fiscal Year-End | 31-Dec | ||
district (CBD) office properties in the U.S. Sunbelt and Mountain West, as well as select opportunistic markets. | Total Properties | 34 (1) | |
FSP seeks value-oriented investments with an eye towards long-term growth and appreciation, as well as current | Total Square Feet | 9.7 Million (1) | |
income. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment | Trading Symbol | FSP | |
trust (REIT) for federal income tax purposes. FSP's real estate operations include property acquisitions and | Exchange | NYSE | |
dispositions, short-term financing, leasing, development and asset management. | American | ||
Common Shares Outstanding 107,328,199 | |||
Our Business | Quarterly Dividend | $0.09 | |
Dividend Yield | 6.6% | ||
As of March 31, 2021, the Company owned and operated a portfolio of real estate consisting of 33 operating | Total Market Capitalization | $1.5 Billion (2) | |
properties, one redevelopment property and two managed Sponsored REITs. From time-to-time, the Company | Insider Holdings | 4.72% | |
may acquire, develop or redevelop real estate, make additional secured loans or acquire one of its Sponsored REITs. | |||
The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value | |||
creation and demand for its properties, or for geographic or property specific reasons. | |||
Management Team | |||
George J. Carter | Jeffrey B. Carter | ||
Chief Executive Officer and | President and Chief Investment | ||
Chairman of the Board | Officer | ||
John G. Demeritt | Scott H. Carter | ||
Executive Vice President, Chief | Executive Vice President, General | ||
Financial Officer and Treasurer | Counsel and Secretary | ||
John F. Donahue | Eriel Anchondo | ||
Executive Vice President | Executive Vice President and | Pershing Park Plaza, Atlanta, GA | |
Chief Operating Officer | |||
Inquiries | |||
Inquiries should be directed to: Georgia Touma | |||
877.686.9496 or InvestorRelations@fspreit.com |
- Includes both operating and redevelopment properties.
- Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.
March 31, 2021| Page 3
Summary of Financial Highlights
(in thousands except per share amounts, SF & number of properties) | ||||||||||||
31-Mar-21 | 31-Dec-20 | 30-Sep-20 | 30-Jun-20 | 31-Mar-20 | ||||||||
Income Items: | ||||||||||||
Rental revenue | $ | 58,623 | $ | 59,408 | $ | 61,834 | $ | 60,398 | $ | 62,567 | ||
Total revenue | 59,039 | 59,810 | 62,247 | 60,808 | 62,983 | |||||||
Net income (loss) | (6,460) | 37,440 | (1,679) | (2,075) | (1,071) | |||||||
Adjusted EBITDA (a)* | 26,556 | 26,409 | 29,334 | 29,139 | 30,325 | |||||||
FFO* | 18,005 | 17,466 | 20,446 | 20,194 | 21,292 | |||||||
AFFO* | 4,384 | 4,867 | 3,452 | 165 | 3,101 | |||||||
Per Share Data: | ||||||||||||
EPS | $ | (0.06) | $ | 0.35 | $ | (0.02) | $ | (0.02) | $ | (0.01) | ||
FFO* | $ | 0.17 | $ | 0.16 | $ | 0.19 | $ | 0.19 | $ | 0.20 | ||
AFFO* | $ | 0.04 | $ | 0.05 | $ | 0.03 | $ | 0.00 | $ | 0.03 | ||
Weighted Average Shares (diluted) | 107,328 | 107,328 | 107,328 | 107,287 | 107,269 | |||||||
Closing share price | $ | 5.45 | $ | 4.37 | $ | 3.66 | $ | 5.09 | $ | 5.73 | ||
Dividend declared | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.09 | $ | 0.09 | ||
Balance Sheet Items: | ||||||||||||
Real estate, net | $ | 1,601,613 | $ | 1,602,016 | $ | 1,649,649 | $ | 1,645,898 | $ | 1,639,196 | ||
Other assets, net | 187,820 | 191,168 | 190,372 | 189,537 | 208,431 | |||||||
Total assets, net | 1,789,433 | 1,793,184 | 1,840,021 | 1,835,435 | 1,847,627 | |||||||
Total liabilities, net | 1,033,849 | 1,025,093 | 1,102,556 | 1,089,432 | 1,090,309 | |||||||
Shareholders' equity | 755,584 | 768,091 | 737,465 | 746,003 | 757,318 | |||||||
Market Capitalization and Debt: | ||||||||||||
Total Market Capitalization (b) | $ | 1,532,439 | $ | 1,392,524 | $ | 1,392,821 | $ | 1,546,301 | $ | 1,614,653 | ||
Total debt outstanding (excluding unamortized financing costs) | $ | 947,500 | $ | 923,500 | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | ||
Debt to Total Market Capitalization | 61.8% | 66.3% | 71.8% | 64.7% | 61.9% | |||||||
Net Debt to Adjusted EBITDA ratio (a)* | 8.9 | 8.7 | 8.5 | 8.6 | 8.1 | |||||||
Operating Properties Leasing Statistics (c): | ||||||||||||
Operating properties assets | 33 | 32 | 32 | 32 | 32 | |||||||
Operating properties total SF | 9,548,810 | 9,331,489 | 9,526,822 | 9,508,226 | 9,506,513 | |||||||
Operating properties % leased | 81.9% | 85.0% | 85.6% | 84.5% | 85.4% |
- Includes a $3,084 (or $12,336 annualized) charge during the three months ended December 31, 2020 from a lease write-off of a tenant in the travel industry that filed for bankruptcy on December 21, 2020, and includes accrued rent (all of which was included within rental revenue). Management believes excluding the impact of this write-off may be more useful in making period to period comparisons of our leverage ratio, and if such write-off were excluded, our Net Debt-to-Adjusted EBIDTA* ratio would have been 7.8 at December 31, 2020.
- Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding on that date.
- Excludes redevelopment properties.
- See pages 9 & 10 for reconciliations of Net income or loss to FFO, AFFO and Adjusted EBITDA, respectively, and the Appendix for Non-GAAP Financial Measures Definitions beginning on page 29.
March 31, 2021| Page 4
Condensed Consolidated Income Statements
($ in thousands, except per share amounts)
For the | ||||||||||||||
For the Three Months Ended | For the Three Months Ended | Year Ended | ||||||||||||
31-Mar-21 | 31-Mar-20 | 30-Jun-20 | 30-Sep-20 | 31-Dec-20 | 31-Dec-20 | |||||||||
Revenue: | ||||||||||||||
Rental | $ | 58,623 | $ | 62,567 | $ | 60,398 | $ | 61,834 | $ | 59,408 | $ | 244,207 | ||
Related party revenue: | ||||||||||||||
Management fees and interest income from loans | 410 | 403 | 405 | 400 | 402 | 1,610 | ||||||||
Other | 6 | 13 | 5 | 13 | - | 31 | ||||||||
Total revenue | 59,039 | 62,983 | 60,808 | 62,247 | 59,810 | 245,848 | ||||||||
Expenses: | ||||||||||||||
Real estate operating expenses | 15,939 | 17,298 | 15,470 | 16,730 | 17,442 | 66,940 | ||||||||
Real estate taxes and insurance | 12,366 | 11,762 | 12,307 | 12,279 | 12,042 | 48,390 | ||||||||
Depreciation and amortization | 24,381 | 22,338 | 22,245 | 22,076 | 21,899 | 88,558 | ||||||||
General and administrative | 4,146 | 3,525 | 3,817 | 3,817 | 3,838 | 14,997 | ||||||||
Interest | 8,600 | 9,063 | 8,980 | 8,953 | 9,030 | 36,026 | ||||||||
Total expenses | 65,432 | 63,986 | 62,819 | 63,855 | 64,251 | 254,911 | ||||||||
Gain on sale of property | - | - | - | - | 41,928 | 41,928 | ||||||||
Income (loss) before taxes on income | (6,393) | (1,003) | (2,011) | (1,608) | 37,487 | 32,865 | ||||||||
Tax expense on income | 67 | 68 | 64 | 71 | 47 | 250 | ||||||||
Net income (loss) | $ | (6,460) | $ | (1,071) | $ | (2,075) | $ | (1,679) | $ | 37,440 | $ | 32,615 | ||
Weighted average number of shares outstanding, basic and diluted | 107,328 | 107,269 | 107,287 | 107,328 | 107,328 | 107,303 | ||||||||
Net income (loss) per share, basic and diluted | $ | (0.06) | $ | (0.01) | $ | (0.02) | $ | (0.02) | $ | 0.35 | $ | 0.30 |
March 31, 2021| Page 5
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Franklin Street Properties Corporation published this content on 03 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 21:54:08 UTC.