SOURCE: Franklin Street Properties Corp.

August 01, 2012 16:00 ET

Franklin Street Properties Corp. Announces Second Quarter 2012 Results

WAKEFIELD, MA--(Marketwire - Aug 1, 2012) -  Franklin Street Properties Corp. (the "Company," "FSP," "we" or "our") (NYSE MKT: FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $19.0 million or $0.23 per share for the second quarter ended June 30, 2012. The Company also announced Net Income of $5.4 million and Earnings Per Share (EPS) of $0.07 for the second quarter and provided an update on other activities. 

The Company evaluates its performance based on Net Income, EPS and FFO and believes each is an important measure. A reconciliation of Net Income to FFO, which is a non-GAAP financial measure, is provided on page 3 of this press release.

             
    Three Months Ended June 30,     Six Months Ended June 30,  
(in 000's except per share data)   2012   2011   Increase
(Decrease)
    2012   2011   Increase
(Decrease)
 
                                         
Net Income   $ 5,434   $ 10,381   $ (4,947 )   $ 11,172   $ 35,148   $ (23,976 )
                                         
FFO   $ 19,041   $ 20,140   $ (1,099 )   $ 38,612   $ 36,390   $ 2,222  
Per Share Data:                                        
EPS   $ 0.07   $ 0.13   $ (0.06 )   $ 0.13   $ 0.43   $ (0.30 )
FFO   $ 0.23   $ 0.25   $ (0.02 )   $ 0.47   $ 0.45   $ 0.02  
                                         

Comparing results for the second quarter of 2012 to 2011, Net Income and EPS decreased $4.9 million or $0.06 per share and FFO decreased $1.1 million or $0.02 per share. The decrease in Net Income and EPS was primarily because in the second quarter of 2011 our investment bank contributed about $3.3 million and we realized a gain on sale of a property in Savage, Maryland in June of 2011, which contributed $2.3 million, neither of which was a factor in the second quarter of 2012. These decreases were partially offset by the benefits of real estate investments made over the last 12 months discussed further below. The decrease in FFO was also because of the investment banking segment, which was discontinued during 2011, and was partially offset by increases from the benefit of increased interest income from real estate loan investments, five property acquisitions made in 2011 (including three acquisitions made in March 2011), all of which we had for the full second quarter of 2012 and leasing activity. 

Comparing results for the first half of 2012 to 2011, Net Income and EPS decreased $24.0 million or $0.30 per share and FFO increased $2.2 million or $0.02 per share. The decrease in Net Income and EPS was primarily from the gains on sale of properties in January and June of 2011, which contributed $21.9 million or $0.27 per share to the first half of 2011. We did not sell any properties during the first half of 2012. In addition, during the six months ended June 30, 2011 our investment bank contributed about $3.4 million, which was not a factor during the six months ended June 30, 2012. These decreases were partially offset by the benefits of real estate investments made over the last 12 months discussed further below. The increase in FFO was primarily from the benefits of increased interest income from real estate loan investments, five property acquisitions made in 2011 (including three acquisitions made in March 2011), all of which we had for the full first half of 2012. We also had the benefit of increased leasing activity that increased occupancy in the real estate portfolio at June 30, 2012 to 90.0% compared to 86.9% at June 30, 2011. 

George J. Carter, President and CEO, commented as follows:

"For the second quarter of 2012, FSP's profits as represented by FFO totaled approximately $19.0 million or $0.23 per share, a decrease of approximately $529,000 or $0.01 per share compared to the first quarter of 2012. Dividend distributions declared for the second quarter of 2012, which are payable on August 16, 2012, will be approximately $15.8 million or $0.19 per share.

"Our directly-owned real estate portfolio of 36 properties, totaling 7,052,592 square feet, was approximately 90% leased as of June 30, 2012, up from approximately 89% leased as of March 31, 2012. Our property portfolio is primarily suburban office assets. Most of the rental/leasing markets where our properties are located remained stable during the second quarter, both in terms of occupancy and rental rate levels. Within this environment, we continue to make slow but steady leasing progress. Our property portfolio has relatively modest lease expirations over the next two and a half years and, along with our improving occupancy levels, should allow overall tenant improvement expenditures and leasing costs to moderate in relation to the level of rental revenues being achieved. We are beginning to see the early signs of that trend.

"There were no additional real estate investments completed in the second quarter of 2012. However, on July 5, 2012, FSP made a $33 million two-year bridge loan on a suburban office property located in the I-10 energy corridor of Houston, Texas. The property is a 14-story, multi-tenant Class A office building containing approximately 325,796 rentable square feet. The property is owned by FSP Energy Tower I Corp., a single-asset REIT affiliate of FSP, and is approximately 100% leased. The loan is secured by a first mortgage on the property. On July 31, 2012, FSP purchased a Class A suburban office property in Atlanta, Georgia known as 'One Ravinia Drive' for $52.8 million. The property is 17 stories, contains approximately 386,603 rentable square feet, is approximately 82% leased to numerous tenants and is located in the 'Central Perimeter' submarket of Atlanta. FSP and its affiliates have been investing in the suburban Atlanta office market since 2003 and currently own three properties there totaling approximately 907,000 square feet.

"There were no property sales in the second quarter of 2012, although we continuously review and evaluate our directly-owned portfolio of 36 properties for potentially advantageous disposition opportunities. In addition, certain properties owned by some of our single-asset REIT affiliates, and in which FSP may have a financial interest, could become possible candidates for sale as they stabilize their occupancies and the markets in which they are located become more attractive to potential acquirers. FSP Phoenix Tower Corp., a single-asset REIT affiliate of FSP, owns a 34-story multi-tenant Class A office building containing approximately 623,944 square feet located in Houston, Texas that is currently being offered for sale. FSP has both an equity and first mortgage loan investment in FSP Phoenix Tower Corp. On July 27, 2012, FSP's $106.2 million two-year bridge loan to its single-asset REIT affiliate, FSP 50 South Tenth Street Corp., was repaid in full from the proceeds of an institutional third-party first mortgage loan secured by the Minneapolis, Minnesota CBD property. Additional potential real estate investment opportunities are actively being explored and we anticipate further real estate investments this year.

"We continue looking forward to the balance of 2012 and beyond." 

Dividend Announcement

On July 13, 2012, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended June 30, 2012 of $0.19 per share of common stock payable on August 16, 2012 to stockholders of record on July 27, 2012. 

Real Estate Update

Supplementary Schedules D and E provide property information for our continuing real estate portfolio of 36 properties and for three non-consolidated REITs that we had preferred stock interests in as of June 30, 2012. The Company will also be filing a 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.franklinstreetproperties.com

A reconciliation of Net Income to FFO is shown below and a definition of FFO is provided on Supplementary Schedule I. We believe FFO is used broadly throughout the real estate investment trust (REIT) industry as a measurement of performance. We have included the NAREIT FFO definition in our table and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that define FFO differently. 

             
Reconciliation of Net Income to FFO:   Three Months Ended     Six Months Ended  
    June 30,     June 30,  
(In thousands, except per share amounts)   2012     2011     2012     2011  
                                 
Net income   $ 5,434     $ 10,381     $ 11,172     $ 35,148  
  Less gain on sale of properties     -       (2,346 )     -       (21,939 )
  GAAP (income) loss from non-consolidated REITs     (494 )     (1,166 )     (885 )     (2,938 )
  Distributions from non-consolidated REITs     898       1,215       1,827       2,982  
  Depreciation & amortization     13,203       12,047       26,498       22,859  
NAREIT FFO     19,041       20,131       38,612       36,112  
  Acquisition costs of new properties     -       9       -       278  
Funds From Operations (FFO)   $ 19,041     $ 20,140     $ 38,612     $ 36,390  
                                 
Per Share Data                                
EPS   $ 0.07     $ 0.13     $ 0.13     $ 0.43  
FFO   $ 0.23     $ 0.25     $ 0.47     $ 0.45  
                                 
Weighted average shares (basic and diluted)     82,937       81,437       82,937       81,437  
                                 

Today's news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.franklinstreetproperties.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. 

A conference call is scheduled for August 2, 2012 at 10:00 a.m. (ET) to discuss the second quarter 2012 results. To access the call, please dial 1-877-317-6789. Internationally, the call may be accessed by dialing 1-412-317-6789. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.franklinstreetproperties.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 achieving current income and long-term growth through investments in commercial properties. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. 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.franklinstreetproperties.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 based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, 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, 2011, 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, 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
Quarterly Information - Prior Four Quarters F
Percentage of Leased Space G
Largest 20 Tenants - FSP Owned Portfolio H
Definition of Funds From Operations (FFO) I
   
   
Franklin Street Properties Corp. Financial Results
Supplementary Schedule A
Condensed Consolidated Income Statements
(Unaudited)
 
    For the
Three Months Ended
June 30,
  For the
Six Months Ended
June 30,
(in thousands, except per share amounts)   2012   2011   2012   2011
                         
Revenue:                        
  Rental   $ 35,830   $ 33,606   $ 72,498   $ 64,705
Related party revenue:                        
  Management fees and interest income from loans     3,045     1,150     5,661     1,958
Other     39     7     73     13
    Total revenue     38,914     34,763     78,232     66,676
                         
Expenses:                        
  Real estate operating expenses     8,828     8,765     17,905     17,495
  Real estate taxes and insurance     5,576     5,228     11,389     9,987
  Depreciation and amortization     13,224     12,029     26,480     22,774
  Selling, general and administrative     2,236     1,602     4,313     3,247
  Interest     4,037     3,578     7,714     5,986
                         
    Total expenses     33,901     31,202     67,801     59,489
                         
Income before interest income, equity in earnings of non-consolidated REITs and taxes     5,013     3,561     10,431     7,187
Interest income     4     5     12     16
Equity in earnings of non-consolidated REITs     494     1,166     885     2,134
                         
Income before taxes on income     5,511     4,732     11,328     9,337
Taxes on income     77     68     156     118
                         
  Income from continuing operations     5,434     4,664     11,172     9,219
                           
  Discontinued operations:                        
  Income from discontinued operations, net of income tax     -     3,371     -     3,990
  Gain on sale of property less applicable income tax     -     2,346     -     21,939
  Total discontinued operations     -     5,717     -     25,929
                         
Net income   $ 5,434   $ 10,381   $ 11,172   $ 35,148
                         
Weighted average number of shares outstanding, basic and diluted     82,937     81,437     82,937     81,437
                         
Earnings per share, basic and diluted, attributable to:                        
  Continuing operations   $ 0.07   $ 0.06   $ 0.13   $ 0.11
  Discontinued operations     -     0.07     -     0.32
Net income per share, basic and diluted   $ 0.07   $ 0.13   $ 0.13   $ 0.43
                         
                         
                         
Franklin Street Properties Corp. Financial Results  
Supplementary Schedule B  
Condensed Consolidated Balance Sheets  
(Unaudited)  
             
(in thousands, except share and par value amounts)   June 30, 2012     December 31, 2011  
Assets:                
Real estate assets, net   $ 997,345     $ 1,006,221  
Acquired real estate leases, less accumulated amortization of $32,337 and $31,189, respectively     82,769       91,613  
Investment in non-consolidated REITs     86,658       87,598  
Cash and cash equivalents     22,620       23,813  
Restricted cash     533       493  
Tenant rent receivables, less allowance for doubtful accounts of $1,300 and $1,235, respectively     1,403       1,460  
Straight-line rent receivable, less allowance for doubtful accounts of $135 and $135, respectively     33,142       28,545  
Prepaid expenses     2,605       1,223  
Related party mortgage loan receivables     177,536       140,516  
Other assets     3,184       4,070  
Office computers and furniture, net of accumulated depreciation of $500 and $428, respectively     456       468  
Deferred leasing commissions, net of accumulated amortization of $10,706 and $9,220, respectively     22,112       22,641  
Total assets   $ 1,430,363     $ 1,408,661  
                 
Liabilities and Stockholders' Equity:                
Liabilities:                
  Bank note payable   $ 494,000     $ 449,000  
  Accounts payable and accrued expenses     25,408       26,446  
  Accrued compensation     944       2,222  
  Tenant security deposits     2,113       2,008  
  Acquired unfavorable real estate leases, less accumulated amortization of $4,203 and $3,759, respectively     6,875       7,618  
    Total liabilities     529,340       487,294  
                 
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, 82,937,405 and 82,937,405 shares issued and outstanding, respectively     8       8  
  Additional paid-in capital     1,042,876       1,042,876  
  Accumulated distributions in excess of accumulated earnings     (141,861 )     (121,517 )
    Total stockholders' equity     901,023       921,367  
    Total liabilities and stockholders' equity   $ 1,430,363     $ 1,408,661  
                     
                     
                     
Franklin Street Properties Corp. Financial Results  
Supplementary Schedule C  
Condensed Consolidated Statements of Cash Flows  
(Unaudited)  
    For the
Six Months Ended
June 30,
 
(in thousands)   2012     2011  
Cash flows from operating activities:                
  Net income   $ 11,172     $ 35,148  
                 
  Adjustments to reconcile net income to net cash provided by operating activities:                
    Depreciation and amortization expense     27,495       23,670  
    Amortization of above market lease     20       (62 )
    Gain on sale of real estate assets     -       (21,939 )
    Equity in earnings of non-consolidated REITs     (885 )     (2,844 )
    Distributions from non-consolidated REITs     993       2,318  
    Increase (decrease) in bad debt reserve     65       (365 )
  Changes in operating assets and liabilities:                
    Restricted cash     (40 )     (39 )
    Tenant rent receivables, net     (8 )     441  
    Straight-line rents, net     (2,571 )     (5,176 )
    Lease acquisition costs     (2,026 )     (55 )
    Prepaid expenses and other assets, net     (1,512 )     914  
    Accounts payable and accrued expenses     (1,395 )     (726 )
    Accrued compensation     (1,278 )     (733 )
    Tenant security deposits     105       546  
  Payment of deferred leasing commissions     (1,513 )     (5,386 )
      Net cash provided by operating activities     28,622       25,712  
Cash flows from investing activities:                
  Purchase of real estate assets, office computers and furniture     (7,112 )     (127,999 )
  Acquired real estate leases     -       (45,032 )
  Investments in non-consolidated REITs     (1 )     (10 )
  Distributions in excess of earnings from non-consolidated REITs     834       664  
  Investment in related party mortgage loan receivable     (37,020 )     (4,232 )
  Changes in deposits on real estate assets     -       200  
  Investment in assets held for syndication, net     -       (8,200 )
  Proceeds received on sales of real estate assets     -       96,790  
      Net cash used in investing activities     (43,299 )     (87,819 )
Cash flows from financing activities:                
  Distributions to stockholders     (31,516 )     (30,946 )
  Proceeds from equity offering, net     -       (90 )
  Borrowings under bank note payable     45,000       345,000  
  Repayment of bank note payable     -       (209,968 )
  Repayment of term loan payable     -       (74,850 )
  Deferred financing costs     -       (5,389 )
  Swap termination payment     -       (982 )
      Net cash provided by financing activities     13,484       22,775  
Net decrease in cash and cash equivalents     (1,193 )     (39,332 )
Cash and cash equivalents, beginning of period     23,813       68,213  
Cash and cash equivalents, end of period   $ 22,620     $ 28,881  
                 
                 
                 
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  
2012   155,148   2.2 %
2013   450,290   6.4 %
2014   415,284   5.9 %
2015   812,702   11.5 %
2016   921,681   13.1 %
Thereafter (2)   4,297,487   60.9 %
    7,052,592   100.0 %
           

(1) Percentages are determined based upon square footage of expiring commercial leases.
(2) Includes 705,090 square feet of current vacancies.

       
       
(dollars & square feet in thousands)   As of June 30, 2012  
    # of       % of     Square   % of  
State   Properties   Investment   Portfolio     Feet   Portfolio  
                           
Texas   10   $ 291,915   29.4 %   2,029   28.7 %
Colorado   4     124,153   12.4 %   789   11.2 %
Virginia   4     101,082   10.1 %   684   9.7 %
Minnesota   2     38,814   3.9 %   626   8.9 %
Missouri   3     66,949   6.7 %   477   6.8 %
North Carolina   3     67,834   6.8 %   431   6.1 %
Georgia   1     70,932   7.1 %   387   5.5 %
Illinois   2     50,283   5.0 %   372   5.3 %
Maryland   1     53,776   5.4 %   325   4.6 %
Michigan   1     14,659   1.5 %   215   3.0 %
Florida   1     46,244   4.6 %   213   3.0 %
Indiana   1     34,886   3.5 %   205   2.9 %
California   2     21,716   2.2 %   182   2.6 %
Washington   1     14,102   1.4 %   117   1.7 %
    36   $ 997,345   100.0 %   7,052   100.0 %
                           
                           
                           
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule E
Portfolio and Other Supplementary Information
(Unaudited & Approximated)
 
                         
    Three Months Ended   Three Months Ended   Six Months Ended
Capital Expenditures
Owned Portfolio
(in thousands)
  31-Mar-12   31-Mar-11   30-Jun-12   30-Jun-11   30-Jun-12   30-Jun-11
                                     
Tenant improvements   $ 3,014   $ 2,506   $ 2,705   $ 3,215   $ 5,719   $ 5,721
Deferred leasing costs     2,196     2,819     1,343     2,567     3,539     5,386
Building improvements     746     449     1,003     876     1,749     1,325
    $ 5,956   $ 5,774   $ 5,051   $ 6,658   $ 11,007   $ 12,432
                                     
                                     
                                     
Square foot & leased percentages   June 30,     December 31,  
    2012     2011  
             
Owned portfolio of commercial real estate            
  Number of properties   36     36  
  Square feet   7,052,592     7,052,068  
  Leased percentage   90 %   89 %
             
Investments in non-consolidated REITs            
  Number of properties   3     3  
  Square feet   2,003,968     2,001,542  
  Leased percentage   89 %   87 %
             
Single Asset REITs (SARs) managed            
  Number of properties   13     13  
  Square feet   3,322,589     3,322,639  
  Leased percentage   85 %   80 %
             
Total owned, investments & managed properties            
  Number of properties   52     52  
  Square feet   12,379,149     12,376,249  
  Leased percentage   89 %   86 %
               
               
               

The following table shows property information for our investments in non-consolidated REITs:

                         
                         
Single Asset REIT name   City   State   Square Feet   % Leased
30-Jun-12
    % Interest Held  
FSP 303 East Wacker Drive Corp.   Chicago   IL   844,953   93.8 %   43.7 %
FSP Grand Boulevard Corp.   Kansas City   MO   535,071   79.9 %   27.0 %
FSP Phoenix Tower Corp.   Houston   TX   623,944   91.8 %   4.6 %
            2,003,968   89.5 %      
                         
                         
                         
Franklin Street Properties Corp. Earnings Release  
Supplementary Schedule F: Quarterly Information  
(Unaudited)  
(in thousands)                        
    Q2     Q3     Q4     Q1  
Revenue:   2011     2011     2011     2012  
  Rental   $ 33,606     $ 33,672     $ 37,014     $ 36,668  
  Related party revenue:                                
Management fees and interest income from loans     1,150       1,037       1,051       2,616  
  Other     7       7       29       34  
    Total revenues     34,763       34,716       38,094       39,318  
Expenses:                                
  Real estate operating expenses     8,765       9,328       9,862       9,077  
  Real estate taxes and insurance     5,228       5,020       5,426       5,813  
  Depreciation and amortization     12,029       12,351       13,124       13,256  
  Selling, general and administrative     1,602       1,654       2,012       2,077  
  Interest     3,578       3,419       3,261       3,677  
    Total expenses     31,202       31,772       33,685       33,900  
                                 
  Income before interest income, equity in earnings of non-consolidated REITs and taxes on income     3,561       2,944       4,409       5,418  
  Interest income     5       3       3       8  
  Equity in earnings of non-consolidated REITs     1,166       573       978       391  
                                   
  Income before taxes on income     4,732       3,520       5,390       5,817  
  Taxes on income     68       67       82       79  
                                   
  Income from continuing operations     4,664       3,453       5,308       5,738  
  Discontinued operations:                                
  Income (loss) from discontinued operations, net of tax     3,371       (139 )     (246 )     -  
  Gain on sale of properties, less applicable income tax     2,346       -       -       -  
  Total discontinued operations     5,717       (139 )     (246 )     -  
                                   
  Net income   $ 10,381     $ 3,314     $ 5,062     $ 5,738  
                                 
                                 
FFO calculations:                                
                                 
Net income   $ 10,381     $ 3,314     $ 5,062     $ 5,738  
  (Gain) Loss on sale of assets     (2,346 )     -       -       -  
  GAAP income from non-consolidated REITs     (1,166 )     (573 )     (978 )     (391 )
  Distributions from non-consolidated REITs     1,215       1,104       970       929  
  Acquisition costs     9       185       157       -  
  Depreciation of real estate & intangible amortization     12,047       12,332       13,248       13,295  
                                 
Funds From Operations (FFO)   $ 20,140     $ 16,362     $ 18,459     $ 19,571  
                                 
                                 
                                 
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule G
Percentage of Leased Space
(Unaudited & Estimated)
                           
  Property Name   Location   Square Feet   % Leased (1) as of 31-Mar-12   First Quarter Average % Leased (2)   % Leased (1) as of 30-Jun-12   Second Quarter Average % Leased (2)
                           
1 PARK SENECA   Charlotte, NC   109,550   80.5%   79.9%   81.5%   80.9%
2 HILLVIEW CENTER   Milpitas, CA   36,288   100.0%   100.0%   100.0%   100.0%
3 SOUTHFIELD   Southfield, MI   214,697   39.2%   39.2%   39.6%   38.5%
4 FOREST PARK   Charlotte, NC   62,212   100.0%   100.0%   100.0%   100.0%
5 CENTENNIAL   Colorado Springs, CO   110,405   85.4%   85.4%   85.4%   85.4%
6 MEADOW POINT   Chantilly, VA   138,537   100.0%   100.0%   100.0%   100.0%
7 TIMBERLAKE   Chesterfield, MO   232,766   97.7%   97.7%   93.2%   96.2%
8 FEDERAL WAY   Federal Way, WA   117,010   47.0%   47.0%   47.0%   47.0%
9 NORTHWEST POINT   Elk Grove Village, IL   176,848   100.0%   100.0%   100.0%   100.0%
10 TIMBERLAKE EAST   Chesterfield, MO   116,197   85.9%   85.9%   97.0%   89.6%
11 PARK TEN   Houston, TX   155,715   81.2%   81.2%   96.1%   91.1%
12 MONTAGUE   San Jose, CA   145,951   100.0%   100.0%   100.0%   100.0%
13 ADDISON   Addison, TX   293,787   95.8%   95.8%   95.8%   95.8%
14 COLLINS CROSSING   Richardson, TX   298,766   87.8%   87.8%   87.8%   87.8%
15 GREENWOOD PLAZA   Englewood, CO   197,527   48.9%   48.9%   48.9%   48.9%
16 RIVER CROSSING   Indianapolis, IN   205,059   93.9%   93.1%   96.1%   94.6%
17 LIBERTY PLAZA   Addison, TX   218,934   76.4%   77.4%   84.1%   78.9%
18 INNSBROOK   Glen Allen, VA   298,456   98.3%   98.3%   98.3%   98.3%
19 380 INTERLOCKEN   Broomfield, CO   240,184   89.5%   86.5%   89.5%   89.5%
20 BLUE LAGOON   Miami, FLA   212,619   100.0%   100.0%   100.0%   100.0%
21 ELDRIDGE GREEN   Houston, TX   248,399   100.0%   100.0%   100.0%   100.0%
22 WILLOW BEND   Plano, TX   117,050   77.4%   77.4%   77.8%   77.8%
23 ONE OVERTON PARK   Atlanta, GA   387,267   91.7%   90.9%   92.6%   92.3%
24 390 INTERLOCKEN   Broomfield, CO   241,516   96.4%   94.6%   97.2%   96.9%
25 EAST BALTIMORE   Baltimore, MD   325,445   56.2%   55.9%   58.2%   57.5%
26 PARK TEN PHASE II   Houston, TX   156,746   100.0%   100.0%   100.0%   100.0%
27 LAKESIDE CROSSING I   Maryland Heights, MO   127,778   100.0%   100.0%   100.0%   100.0%
28 LOUDOUN TECH   Dulles, VA   135,888   100.0%   100.0%   100.0%   100.0%
29 4807 STONECROFT   Chantilly, VA   111,469   100.0%   100.0%   100.0%   100.0%
30 EDEN BLUFF   Eden Prairie, MN   153,028   100.0%   100.0%   100.0%   100.0%
31 121 SOUTH EIGHTH ST   Minneapolis, MN   472,712   93.8%   93.8%   95.6%   94.4%
32 EMPEROR BOULEVARD   Durham, NC   259,531   100.0%   100.0%   100.0%   100.0%
33 LEGACY TENNYSON CTR   Plano, TX   202,600   100.0%   100.0%   100.0%   100.0%
34 ONE LEGACY   Plano, TX   214,110   100.0%   100.0%   100.0%   100.0%
35 909 DAVIS   Evanston, IL   195,245   94.8%   94.8%   94.8%   94.8%
36 1410 EAST RENNER   Richardson, TX   122,300   100.0%   100.0%   100.0%   100.0%
                           
  TOTAL WEIGHTED AVERAGE    7,052,592   89.0%   88.8%   90.0%   89.5%

(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.

 
 
 
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule H
Largest 20 Tenants - FSP Owned Portfolio
(Unaudited & Estimated)
 
 The following table includes the largest 20 tenants in FSP's owned portfolio based on leased square feet:
               
  As of June 30, 2012            
               
  Tenant   Sq Ft   SIC Code   % of Portfolio
1 TCF National Bank   268,984   60   3.8%
2 Quintiles Transnational Corp   259,531   87   3.7%
3 CITGO Petroleum Corporation   248,399   29   3.5%
4 Burger King Corporation   212,619   58   3.0%
5 Denbury Onshore LLC   202,600   13   2.9%
6 RGA Reinsurance Company   185,501   63   2.6%
7 SunTrust Bank   182,888   60   2.6%
8 Citicorp Credit Services, Inc   176,848   61   2.5%
9 C.H. Robinson Worldwide, Inc   153,028   47   2.2%
10 Houghton Mifflin Harcourt Publishing Company   150,050   27   2.1%
11 Murphy Exploration & Production Company   144,677   13   2.1%
12 Giesecke & Devrient America, Inc.   135,888   73   1.9%
13 Monsanto Company   127,778   28   1.8%
14 AT&T Services, Inc.   122,300   48   1.7%
15 Vail Holdings, Inc.   122,232   79   1.7%
16 Northrop Grumman Systems Corporation   111,469   73   1.6%
17 Argo Data Resource Corporation   109,990   73   1.6%
18 Alliance Data Systems   96,749   73   1.4%
19 Federal National Mortgage Association   92,358   61   1.3%
20 County of Santa Clara   90,467   91   1.3%
  Total   3,194,356       45.3%
 
 
 
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule I
Definition of Funds From Operations ("FFO"),
 

The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, and after adjustments to exclude non-cash income (or losses) from non-consolidated or Sponsored REITs, plus distributions received from non-consolidated or Sponsored REITs. 

FFO should not be considered as an alternative to net income (determined in accordance with GAAP), nor as an indicator of the Company's financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company's liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company's needs. 

Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO definition in our table and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do. 

We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements. 

Contact Information

  • Contact:
    John Demeritt
    (877) 686-9496