Franklin Street Properties : Q4 2022 Supplemental Operating Data

February 15, 2023 - Real Estate Investment

Franklin Street Properties Corp.

Supplemental Operating & Financial Data

401 Edgewater Place ~Wakefield, MA 01880

781.557.1300.~ www.fspreit.com

Fourth Quarter 2022

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	Capital Expenditures	24
Property Net Operating Income (NOI)	8

Reconciliation		Transaction Activity	25
FFO & AFFO	9
EBITDA	10	Loan Portfolio of Secured Real Estate	26
Property NOI	11
		Net Asset Value Components	27
Debt Summary	12
		Appendix: Non-GAAP Financial Measures Definitions
Capital Analysis	13	FFO	28
		EBITDA and NOI	29
Owned and Managed Portfolio Overview	14-17	AFFO	30

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 geopolitical events, increasing inflation, 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.

801 Marquette, Minneapolis, MN

December 31, 2022| Page 2

Overview

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. FSP's real estate operations include property acquisitions and dispositions, short-term financing, leasing, development and asset management.

Our Business

As of December 31, 2022, the Company owned and operated a portfolio of real estate consisting of 21 operating properties and one managed Sponsored REIT. From time-to-time, the Company may acquire, develop or redevelop real estate, make additional secured loans or acquire its Sponsored REIT. 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, for geographic, property specific reasons or for other general corporate purposes.

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
	Chief Operating Officer

Inquiries

Inquiries should be directed to: Georgia Touma 877.686.9496 or [email protected]

Total Market Capitalization is the closing share price multiplied by the number of shares outstanding plus total debt outstanding.

Snapshot (as of December 31, 2022)

Corporate Headquarters	Wakefield, MA
Fiscal Year-End	31-Dec
Total Properties	21
Total Square Feet	6.2 Million
Trading Symbol	FSP
Exchange	NYSE
	American
Common Shares Outstanding 103,235,914
Total Market Capitalization	$0.7 Billion (1)
Insider Holdings	5.57%

1999 Broadway, Denver, CO

December 31, 2022| Page 3

Summary of Financial Highlights

(in thousands except per share amounts, SF & number of properties)
		31-Dec-22		30-Sep-22		30-Jun-22		31-Mar-22		31-Dec-21
Income Items:
Rental revenue	$	40,745	$	40,366	$	40,831	$	41,797	$	42,910
Total revenue		41,211		40,836		41,304		42,264		43,372
Net income (loss)		(2,884)		17,246		(9,110)		(4,158)		78,572
Adjusted EBITDA*		16,112		15,250		15,891		16,918		17,518
FFO*		10,463		9,041		10,257		11,582		10,955
AFFO*		(8,681)		(9,735)		(4,072)		918		3,241

Per Share Data:
EPS	$	(0.03)	$	0.17	$	(0.09)	$	(0.04)	$	0.75
FFO*	$	0.10	$	0.09	$	0.10	$	0.11	$	0.10
AFFO*	$	(0.08)	$	(0.09)	$	(0.04)	$	0.01	$	0.03
Weighted Average Shares (diluted)		103,236		103,236		103,193		103,691		105,098
Closing share price	$	2.73	$	2.63	$	4.17	$	5.90	$	5.95
Dividend declared	$	0.01	$	0.01	$	0.09	$	0.09	$	0.41

Balance Sheet Items:
Real estate, net	$	1,103,248	$	1,118,983	$	1,186,157	$	1,187,348	$	1,190,970
Other assets, net		138,418		143,087		145,562		149,772		173,203
Total assets, net		1,241,666		1,262,070		1,331,719		1,337,120		1,364,173
Total liabilities, net		472,930		489,509		577,687		567,234		580,970
Shareholders' equity		768,736		772,561		754,032		769,886		783,203

Market Capitalization and Debt:
Total Market Capitalization (a)	$	694,834	$	701,510	$	960,494	$	1,123,596	$	1,093,791
Total debt outstanding (excluding unamortized financing costs)	$	413,000	$	430,000	$	530,000	$	515,000	$	475,000
Debt to Total Market Capitalization		59.4%		61.3%		55.2%		45.8%		43.4%
Net Debt to Adjusted EBITDA ratio*		6.3		6.9		8.3		7.4		6.2

Operating Properties Leasing Statistics (b):
Operating properties assets		21		22		24		24		24
Operating properties total SF		6,239,530		6,433,954		6,915,715		6,915,609		6,911,225
Operating properties % leased		75.6%		75.9%		76.3%		77.3%		78.4%

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 28.

December 31, 2022| Page 4

Condensed Consolidated Income Statements

($ in thousands, except per share amounts)

													For the												For the
			For the Three Months Ended				Year Ended				For the Three Months Ended				Year Ended
			31-Mar-22		30-Jun-22	30-Sep-2231-Dec-22			31-Dec-22			31-Mar-21		30-Jun-21		30-Sep-21		31-Dec-21			31-Dec-21

Revenue:
Rental		$	41,797	$	40,831	$	40,366	$		40,745		$	163,739	$	58,623	$	55,722	$	50,326	$	42,910		$	207,581
Related party revenue:
Management fees and interest income from loans			460		467		466			462			1,855			410		417		419		454			1,700
Other			7		6		4			4			21			6		6		57		8			77
Total revenue			42,264		41,304		40,836			41,211			165,615			59,039		56,145		50,802		43,372			209,358

Expenses:
Real estate operating expenses			12,834		12,344		13,369			14,273			52,820			15,939		15,352		14,373		15,217			60,881
Real estate taxes and insurance			8,719		9,043		8,951			7,907			34,620			12,366		11,895		10,200		6,600			41,061
Depreciation and amortization			15,670		18,186		15,148			14,804			63,808			24,381		19,136		18,862		16,165			78,544
General and administrative			3,784		3,981		3,232			2,888			13,885			4,146		3,962		3,749		4,041			15,898
Interest			5,366		5,664		6,110			5,668			22,808			8,600		10,054		7,928		5,691			32,273
Total expenses			46,373		49,218		46,810			45,540			187,941			65,432		60,399		55,112		47,714			228,657

Loss on extinguishment of debt		-		-		(78)			-		(78)			-		(167)		(236)		(498)		(901)
Impairment and loan loss reserve			-		(1,140)		(717)			(2,380)		(4,237)			-		-		-		-		-
Gain on sale of properties, net			-		-		24,077			3,862			27,939			-		20,626		8,632		83,876			113,134
Income (loss) before taxes on income and equity in income of non-consolidated
REITs			(4,109)		(9,054)		17,308			(2,847)			1,298			(6,393)		16,205		4,086		79,036			92,934
Tax expense on income			49		56		62			37			204			67		56		51		464			638
Equity in income of non-consolidated REITs			-		-		-			-		-			-		-		421		-		421

Net income (loss)	$	(4,158)	$	(9,110)	$	17,246	$	(2,884)	$	1,094	$	(6,460)	$	16,149	$	4,456	$	78,572		$	92,717

Weighted average number of shares outstanding, basic and diluted		103,691		103,193		103,236		103,236			103,338			107,328		107,359		106,905		105,098			106,667

Net income (loss) per share, basic and diluted	$	(0.04)	$	(0.09)	$	0.17	$	(0.03)	$	0.01	$	(0.06)	$	0.15	$	0.04	$	0.75		$	0.87

December 31, 2022| Page 5

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Franklin Street Properties Corporation published this content on 14 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 February 2023 21:48:42 UTC.

Publicnow 2023

All news about FRANKLIN STREET PROPERTIES CORP.

Analyst Recommendations on FRANKLIN STREET PROPERTIES CORP.

Sales 2022	161 M - -
Net income 2022	-3,19 M - -
Net Debt 2022	- - -
P/E ratio 2022	-96,3x
Yield 2022	6,81%

Capitalization	298 M 298 M -
Capi. / Sales 2022	1,86x
Capi. / Sales 2023	1,98x
Nbr of Employees	34
Free-Float	89,6%

Chart FRANKLIN STREET PROPERTIES CORP.

Duration :

Period :

Technical analysis trends FRANKLIN STREET PROPERTIES CORP.

	Short Term	Mid-Term	Long Term
Trends	Neutral	Neutral	Bearish

Income Statement Evolution

Sell Buy
Mean consensus	OUTPERFORM
Number of Analysts	3
Last Close Price	2,89 $
Average target price	3,17 $
Spread / Average Target	9,57%

Source link

Prudential Cal strives to provide the most detailed information about the real estate industry. We assist people in making the best decisions possible by offering unique insights into the global real estate market and advice for both homebuyers and sellers.

Quicklinks

Additional Information