SOURCE: Franklin Street Properties Corp.

November 01, 2011 16:17 ET

Franklin Street Properties Corp. Announces Third Quarter 2011 Results

WAKEFIELD, MA--(Marketwire - Nov 1, 2011) - Franklin Street Properties Corp. (the "Company", "FSP", "we" or "our") (NYSE Amex: FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $16.4 million or $0.20 per share for the third quarter ended September 30, 2011. The Company also announced Net Income of $3.3 million and Earnings per Share (EPS) of $0.04 for the third quarter and provided an update on other activities.

The Company evaluates its performance based on Net Income, EPS, FFO, Gains on Sales (GOS) and FFO+GOS, and believes each is an important measure. A reconciliation of Net Income to FFO and FFO+GOS, which are non-GAAP financial measures, is provided on page 4 of this press release.

Three Months Ended September 30, Nine Months Ended September 30,
(in 000's except per share data) 2011 2010 Increase
(Decrease)
2011 2010 Increase
(Decrease)
Net Income $ 3,314 $ 4,757 $ (1,443 ) $ 38,462 $ 16,273 $ 22,189
FFO $ 16,362 $ 16,052 $ 310 $ 52,752 $ 49,404 $ 3,348
GOS - - - 21,939 - 21,939
FFO+GOS $ 16,362 $ 16,052 $ 310 $ 74,691 $ 49,404 $ 25,287
Per Share Data:
EPS $ 0.04 $ 0.06 $ (0.02 ) $ 0.47 $ 0.20 $ 0.27
FFO $ 0.20 $ 0.20 $ - $ 0.65 $ 0.62 $ 0.03
GOS $ - $ - $ - $ 0.27 $ - $ 0.27
FFO+GOS $ 0.20 $ 0.20 $ - $ 0.92 $ 0.62 $ 0.30
Weighted average shares (diluted) 81,600 79,751 1,849 81,492 79,704 1,788

Comparing results for the third quarter of 2011 to 2010, Net Income and EPS decreased $1.4 million or $0.02 per share, FFO increased $0.3 million and FFO+GOS increased $0.3 million. The increase in FFO was primarily attributable to an increase in real estate FFO of $0.1 million and an increase in investment banking FFO of $0.2 million. The increase in real estate FFO was primarily from three new acquisitions made in March 2011, and the benefits of increased occupancy in the real estate portfolio at September 30, 2011, compared to September 30, 2010, and was partially offset by the sale of two properties in 2011. One is a property in Falls Church, Virginia sold in January 2011 and the other is a property in Savage, Maryland sold in June 2011. The increase from investment banking resulted from greater sales of securities by our investment bank, which were $7.5 million for the third quarter of 2011 as compared to $0.3 million in the third quarter of 2010. Revenue from our investment bank is primarily based on the value of securities sales. There was no GOS during the third quarter of 2011 or 2010.

Comparing results for the nine months ended September 30, 2011 to the same period in 2010, Net Income and EPS increased $22.2 million or $0.27 per share, FFO increased $3.3 million or $0.03 per share and FFO+GOS increased $25.3 million or $0.30 per share. The increase in FFO was primarily attributable to an increase in investment banking FFO of $3.8 million and was partially offset by a decrease in real estate FFO of $0.5 million. The decrease in real estate FFO was primarily a result of timing of the sale of a property in Falls Church, Virginia in January 2011, for which proceeds were not reinvested until March 2011, compared to results in the nine months ended September 30, 2010, during which we did not sell properties. The increase in investment banking FFO resulted from greater sales of securities by our investment bank, which were $57.6 million during the nine months ended September 30, 2011 as compared to $10.7 million for the same period of 2010. Revenue from our investment bank is primarily based on the value of securities sales. The sale of a property in January 2011 located in Falls Church, Virginia contributed $19.6 million and the sale of a property in June 2011 located in Savage, Maryland contributed $2.3 million, or in the aggregate, $0.27 per share of GOS for the nine months ended September 30, 2011. There was no GOS during the same period of 2010.

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

"For the third quarter of 2011, FSP's profits as represented by FFO + GOS totaled approximately $16.4 million or $0.20 per share, a decrease of $0.05 per share compared to the second quarter of 2011. Dividend distributions declared for the third quarter of 2011, which are payable on November 18, 2011, are approximately $15.8 million or $0.19 per share.

Our directly-owned real estate portfolio of 35 properties, totaling 6,929,891 square feet, was approximately 88.1% leased as of September 30, 2011, up from approximately 86.9% leased as of June 30, 2011. Our property portfolio is primarily suburban office assets. Many of the rental/leasing markets where our properties are located remained stable during the third quarter, and showed moderate improvement in occupancy and rental-rate levels. The nation's stalling employment growth as well as financial and regulatory uncertainty appear to be factors in slowing many corporate decisions on potential future office space needs. However, we continue to make leasing progress in our portfolio and continue to have as our objective to move overall occupancy levels to the 90+% range by early 2012.

There was one new property acquisition completed in the third quarter of 2011 for a total purchase price of approximately $35.1 million excluding closing costs and adjustments. The property is located in Evanston, Illinois at 909 Davis Street, and totals approximately 195,245 rentable square feet. It is approximately 95% leased and, together with "Northwest Point" and our preferred share interest in "303 East Wacker", brings to three our greater Chicago area property investments. Additional real estate investments during the fourth quarter are a major objective of FSP, and we would anticipate additional activity this year. There were no property dispositions in the third quarter.

During the third quarter of 2011, our Investment Banking Group raised $7,475,000 of a $62,000,000 private placement offering that began in March of this year. As of the beginning of the fourth quarter, there remained $9,200,000 of the offering to be subscribed. Investment banking business slowed significantly in the third quarter as we continued to see our typical investor's confidence and interest in commercial real estate to be changeable and very dependent on broader capital market/stock market activity. Capital raising efforts in this business over any specific period of time are likely to remain unpredictable.

We believe FSP continues to be in an excellent environment to position itself for meaningful future growth. Our Company will continue to use its capabilities and strong balance sheet to take advantage of competitive tenant leasing requirements and attractive real estate investment opportunities that are presenting themselves as a result of the current cyclical softness in the economy and certain commercial property markets. We are very much looking forward to realizing our future growth potential."

Dividend Announcement

On October 14, 2011, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended September 30, 2011 of $0.19 per share of common stock payable on November 18, 2011 to stockholders of record on October 28, 2011.

Real Estate Update

Supplementary Schedules D and E provide property information for our continuing real estate portfolio of 35 properties and for three non-consolidated REITs that we had interests in as of September 30, 2011. 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 and FFO+GOS is shown below and definitions of FFO and FFO+GOS are provided on Supplementary Schedule I. We believe FFO is used broadly throughout the real estate investment trust (REIT) industry as a measurement of performance. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that define FFO differently. We also believe that FFO+GOS is an important measure as it considers investment performance.

Reconciliation of Net Income to FFO and FFO+GOS: Three Months Ended Nine Months Ended
September 30, September 30,
(In thousands, except per share amounts) 2011 2010 2011 2010
Net income $ 3,314 $ 4,757 $ 38,462 $ 16,273
Less gain on sale of properties - - (21,939 ) -
GAAP (income) loss from non-consolidated REITs (573 ) (404 ) (3,511 ) (1,037 )
Distributions from non-consolidated REITs 1,104 1,192 4,086 3,923
Acquisition costs of new properties 185 (4 ) 463 125
Depreciation & amortization 12,332 10,511 35,191 30,120
Funds From Operations (FFO) 16,362 16,052 52,752 49,404
Plus gains on sales of assets (GOS) - - 21,939 -
FFO+GOS $ 16,362 $ 16,052 $ 74,691 $ 49,404
Per Share Data
EPS $ 0.04 $ 0.06 $ 0.47 $ 0.20
FFO $ 0.20 $ 0.20 $ 0.65 $ 0.62
GOS $ - $ - $ 0.27 $ -
FFO+GOS $ 0.20 $ 0.20 $ 0.92 $ 0.62
Weighted average shares (basic and diluted) 81,600 79,751 81,492 79,704

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 November 2, 2011 at 10:00 a.m. (ET) to discuss the third quarter 2011 results. To access the call, please dial 1-866-831-6272, passcode 96067963. Internationally, the call may be accessed by dialing 1-617-213-8859, passcode 96067963. 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. FSP operates in two business segments: real estate operations and investment banking/investment services. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP's subsidiary, FSP Investments LLC (member, FINRA and SIPC), is a real estate investment banking firm and a registered broker/dealer. 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, changes in the demand by investors for investment in Sponsored REITs (as defined in our Annual Report on Form 10-K for the year ended December 31, 2010), risks of a lessening of demand for the types of real estate owned by us, changes in government regulations, 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, 2010, 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 F
Percentage of Leased Space G
Largest 20 Tenants - FSP Owned Portfolio H
Definition of Funds From Operations (FFO) and FFO+GOS I
Franklin Street Properties Corp. Financial Results
Supplementary Schedule A
Condensed Consolidated Income Statements
(Unaudited)
For the
Three Months Ended
September 30,
For the
Nine Months Ended
September 30,
(in thousands, except per share amounts) 2011 2010 2011 2010
Revenue:
Rental $ 33,672 $ 29,222 $ 98,377 $ 84,855
Related party revenue:
Syndication fees 533 20 4,023 682
Transaction fees 470 246 3,846 1,145
Management fees and interest income from loans 1,037 630 2,995 1,721
Other 7 20 20 35
Total revenue 35,719 30,138 109,261 88,438
Expenses:
Real estate operating expenses 9,328 8,714 26,823 23,998
Real estate taxes and insurance 5,020 4,636 15,007 13,646
Depreciation and amortization 12,389 9,655 35,239 26,600
Selling, general and administrative 2,414 2,074 7,178 6,804
Commissions 349 16 2,192 466
Interest 3,419 1,892 9,405 5,280
Total expenses 32,919 26,987 95,844 76,794
Income before interest income, equity in earnings of non-consolidated REITs and taxes 2,800 3,151 13,417 11,644
Interest income 8 4 28 21
Equity in earnings of non-consolidated REITs 573 404 2,707 1,037
Income before taxes on income 3,381 3,559 16,152 12,702
Taxes on income (benefit) 67 (37 ) 185 (101 )
Income from continuing operations 3,314 3,596 15,967 12,803
Discontinued operations:
Income from discontinued operations - 1,161 556 3,470
Gain on sale of property less applicable income tax - - 21,939 -
Total discontinued operations - 1,161 22,495 3,470
Net income $ 3,314 $ 4,757 $ 38,462 $ 16,273
Weighted average number of shares outstanding, basic and diluted 81,600 79,751 81,492 79,704
Earnings per share, basic and diluted, attributable to:
Continuing operations $ 0.04 $ 0.05 $ 0.20 $ 0.16
Discontinued operations - 0.01 0.27 0.04
Net income per share, basic and diluted $ 0.04 $ 0.06 $ 0.47 $ 0.20
Franklin Street Properties Corp. Financial Results
Supplementary Schedule B
Condensed Consolidated Balance Sheets
(Unaudited)
September 30, December 31,
(in thousands, except share and par value amounts) 2011 2010
Assets:
Real estate assets, net $ 997,258 $ 862,698
Acquired real estate leases, less accumulated amortization of $26,668 and $19,294, respectively 91,585 40,578
Investment in non-consolidated REITs 88,225 89,327
Assets held for syndication, net 4,720 2,976
Assets held for sale - 74,947
Cash and cash equivalents 44,047 68,213
Restricted cash 477 420
Tenant rent receivables, less allowance for doubtful accounts of $1,235 and $1,600, respectively 1,418 1,922
Straight-line rent receivable, less allowance for doubtful accounts of $135 and $700, respectively 26,067 18,752
Prepaid expenses 2,553 1,654
Related party mortgage loan receivable 61,916 57,684
Other assets 4,757 685
Office computers and furniture, net of accumulated depreciation of $629 and $493, respectively 462 503
Deferred leasing commissions, net of accumulated amortization of $8,619 and $7,175, respectively 22,299 18,376
Total assets $ 1,345,784 $ 1,238,735
Liabilities and Stockholders' Equity:
Liabilities:
Bank note payable $ 375,000 $ 209,968
Term loan payable - 74,850
Accounts payable and accrued expenses 28,258 22,435
Accrued compensation 1,383 1,803
Tenant security deposits 2,453 1,930
Other liabilities: derivative termination value 63 1,077
Acquired unfavorable real estate leases, less accumulated amortization of $3,391 and $2,744, respectively 6,627 5,114
Total liabilities 413,784 317,177
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 81,437,405 shares issued and outstanding, respectively 8 8
Additional paid-in capital 1,042,876 1,025,491
Accumulated other comprehensive loss (63 ) (1,077 )
Accumulated distributions in excess of accumulated earnings (110,821 ) (102,864 )
Total stockholders' equity 932,000 921,558
Total liabilities and stockholders' equity $ 1,345,784 $ 1,238,735
Franklin Street Properties Corp. Financial Results
Supplementary Schedule C
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the
Nine Months Ended
September 30,
(in thousands) 2011 2010
Cash flows from operating activities:
Net income $ 38,462 $ 16,273
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense 36,563 29,078
Amortization of above market lease (119 ) 1,243
Gain on sale of real estate assets (21,939 ) -
Equity in earnings of non-consolidated REITs (2,805 ) (1,037 )
Distributions from non-consolidated REITs 4,086 3,923
Increase (decrease) in bad debt reserve (365 ) 920
Changes in operating assets and liabilities: -
Restricted cash (57 ) 279
Tenant rent receivables, net 869 (1,261 )
Straight-line rents, net (7,404 ) (2,961 )
Prepaid expenses and other assets, net 116 (126 )
Accounts payable and accrued expenses 4,131 615
Accrued compensation (420 ) (82 )
Tenant security deposits 523 114
Payment of deferred leasing commissions (6,710 ) (7,894 )
Net cash provided by operating activities 44,931 39,084
Cash flows from investing activities:
Purchase of real estate assets, office computers and furniture (155,320 ) (33,096 )
Acquired real estate leases (58,955 ) (15,563 )
Investments in non-consolidated REITs (10 ) (2 )
Investment in related party mortgage loan receivable (4,232 ) (17,221 )
Changes in deposits on real estate assets 200 -
Investment in assets held for syndication, net (2,427 ) 4,858
Proceeds received on sales of real estate assets 96,790 -
Net cash used in investing activities (123,954 ) (61,024 )
Cash flows from financing activities:
Distributions to stockholders (46,419 ) (45,418 )
Proceeds from offering 18,001 1,906
Equity offering costs (536 ) (358 )
Borrowings under bank note payable 375,000 58,960
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 54,857 15,090
Net decrease in cash and cash equivalents (24,166 ) (6,850 )
Cash and cash equivalents, beginning of period 68,213 27,404
Cash and cash equivalents, end of period $ 44,047 $ 20,554
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule D
Real Estate Portfolio Summary Information
(Unaudited & Approximated)
Commercial portfolio lease expirations (1)
As of September 30, 2011
Total % of
Year Square Feet Portfolio
2011 123,479 1.8 %
2012 325,061 4.7 %
2013 419,885 6.1 %
2014 432,333 6.2 %
2015 798,433 11.5 %
Thereafter (2) 4,830,700 69.7 %
6,929,891 100.0 %
(1) Percentages are determined based upon square footage of expiring commercial leases.
(2) Includes 824,236 square feet of current vacancies.
(dollars & square feet in 000's) As of September 30, 2011
# of % of Square % of
State Properties Investment Portfolio Feet Portfolio
Texas 9 $ 286,147 28.7 % 1,906 27.5 %
Colorado 4 123,866 12.4 % 789 11.4 %
Virginia 4 101,302 10.2 % 685 9.9 %
Minnesota 2 38,127 3.8 % 625 9.0 %
Missouri 3 68,642 6.9 % 477 6.9 %
North Carolina 3 69,158 6.9 % 431 6.2 %
Georgia 1 72,218 7.2 % 387 5.6 %
Illinois 2 50,956 5.1 % 372 5.4 %
Maryland 1 54,702 5.5 % 325 4.7 %
Michigan 1 15,115 1.5 % 215 3.1 %
Florida 1 46,097 4.6 % 213 3.1 %
Indiana 1 34,937 3.5 % 205 3.0 %
California 2 21,619 2.2 % 182 2.6 %
Washington 1 14,373 1.4 % 117 1.7 %
35 $ 997,258 100.0 % 6,929 100.0 %
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule E
Portfolio and Other Supplementary Information
(Unaudited & Approximated)
Capital Expenditures
Owned Portfolio Nine Months Ended
(in thousands) 30-Sep-11 30-Sep-10
Tenant improvements $ 10,813 $ 5,872
Deferred leasing costs 6,710 7,894
Building improvements 2,079 1,549
$ 19,602 $ 15,315
Square foot & leased percentages September 30, December 31,
2011 2010
Owned portfolio of commercial real estate
Number of properties (1) 35 33
Square feet 6,929,891 6,422,357
Leased percentage 88 % 86 %
Investments in non-consolidated REITs
Number of properties 3 3
Square feet 1,998,575 1,995,913
Leased percentage 83 % 77 %
Single Asset REITs (SARs) managed
Number of properties 13 12
Square feet 3,322,638 2,915,896
Leased percentage 80 % 75 %
Total owned, investments & managed properties
Number of properties 51 48
Square feet 12,251,104 11,334,166
Leased percentage 85 % 81 %
(1) Includes asset held for sale at 12/31/2010

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

Square % Leased % Interest
Single Asset REIT name City State Feet 30-Sep-11 Held
FSP 303 East Wacker Drive Corp. Chicago IL 844,953 94.0 % 43.7 %
FSP Grand Boulevard Corp. Kansas City MO 533,999 79.8 % 27.0 %
FSP Phoenix Tower Corp. Houston TX 619,623 72.2 % 4.6 %
1,998,575 83.4 %
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule F: Quarterly Information
(Unaudited)
(in 000's)
Q3 Q4 Q1 Q2
Revenue: 2010 2010 2011 2011
Rental $ 29,222 $ 29,782 $ 31,100 $ 33,605
Related party revenue:
Syndication fees 20 1,862 517 2,973
Transaction fees 246 1,582 691 2,685
Management fees and interest income from loans 630 719 808 1,150
Other 20 54 6 7
Total revenue 30,138 33,999 33,122 40,420
Expenses:
Real estate operating expenses 8,714 9,602 8,730 8,765
Real estate taxes and insurance 4,636 4,430 4,759 5,228
Depreciation and amortization 9,655 9,729 10,783 12,067
Selling, general and administrative 2,074 2,482 2,368 2,396
Commissions 16 1,011 288 1,555
Interest 1,892 2,004 2,408 3,578
Total expenses 26,987 29,258 29,336 33,589
Income before interest income, equity in earnings in non-consolidated REITs 3,151 4,741 3,786 6,831
Interest income 4 4 11 9
Equity in earnings in non-consolidated REITs 404 229 968 1,166
Income before taxes on income 3,559 4,974 4,765 8,006
Taxes on income (37 ) 317 50 68
Income from continuing operations 3,596 4,657 4,715 7,938
Income from discontinued operations 1,161 1,163 459 97
Income before gain on sale of properties 4,757 5,820 5,174 8,035
Gain on sale of assets - - 19,593 2,346
Net income $ 4,757 $ 5,820 $ 24,767 $ 10,381
FFO and FFO+GOS calculations:
Net income $ 4,757 $ 5,820 $ 24,767 $ 10,381
(Gain) Loss on sale of assets - - (19,593 ) (2,346 )
GAAP income from non-consolidated REITs (404 ) (153 ) (1,772 ) (1,166 )
Distributions from non-consolidated REITs 1,192 1,247 1,767 1,215
Acquisition costs of new properties (4 ) - 269 9
Depreciation of real estate and intangible amortization 10,510 10,605 10,812 12,047
Funds From Operations (FFO) 16,051 17,519 16,250 20,140
Plus gains on sales of assets - - 19,593 2,346
FFO+GOS $ 16,051 $ 17,519 $ 35,843 $ 22,486
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule G
Percentage of Leased Space
(Unaudited & Estimated)
% Second % Third
Leased (1) Quarter Leased (1) Quarter
Square as of Average % as of Average %
Property Name Location Feet 30-Jun-11 Leased (2) 30-Sep-11 Leased (2)
1 PARK SENECA Charlotte, NC 109,550 80.1 % 79.1 % 80.9 % 80.5 %
2 HILLVIEW CENTER Milpitas, CA 36,288 100.0 % 100.0 % 100.0 % 100.0 %
3 SOUTHFIELD Southfield, MI 214,697 39.2 % 41.7 % 39.2 % 39.2 %
4 FOREST PARK Charlotte, NC 62,212 100.0 % 85.0 % 100.0 % 100.0 %
5 CENTENNIAL Colorado Springs, CO 110,730 66.9 % 66.9 % 66.9 % 66.9 %
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 % 97.7 % 97.7 %
8 FEDERAL WAY Federal Way, WA 117,010 42.0 % 42.0 % 42.0 % 42.0 %
9 NORTHWEST POINT Elk Grove Village, IL 176,848 100.0 % 100.0 % 100.0 % 100.0 %
10 TIMBERLAKE EAST Chesterfield, MO 116,197 100.0 % 100.0 % 85.9 % 90.6 %
11 PARK TEN Houston, TX 155,715 98.8 % 98.8 % 98.8 % 98.8 %
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 79.7 % 79.3 % 88.4 % 88.4 %
15 GREENWOOD PLAZA Englewood, CO 197,527 54.3 % 58.2 % 54.3 % 54.3 %
16 RIVER CROSSING Indianapolis, IN 205,059 93.5 % 93.4 % 93.5 % 93.5 %
17 LIBERTY PLAZA Addison, TX 218,934 75.6 % 75.6 % 68.6 % 68.0 %
18 INNSBROOK Glen Allen, VA 298,692 63.7 % 67.3 % 86.8 % 78.8 %
19 380 INTERLOCKEN Broomfield, CO 240,184 85.1 % 85.1 % 85.1 % 85.1 %
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 116,622 83.1 % 76.8 % 83.1 % 83.1 %
23 ONE OVERTON PARK Atlanta, GA 387,267 91.1 % 91.5 % 90.4 % 90.6 %
24 390 INTERLOCKEN Broomfield, CO 241,516 95.9 % 95.9 % 96.6 % 96.9 %
25 EAST BALTIMORE Baltimore, MD 325,445 55.7 % 55.5 % 55.7 % 55.7 %
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 472,178 92.5 % 92.1 % 93.6 % 93.1 %
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 % 94.6 % 100.0 % 100.0 %
35 909 DAVIS Evanston, IL 195,245 n/a n/a 94.8 % 94.8 %
TOTAL WEIGHTED AVERAGE (3 ) 6,929,891 86.9 % 86.9 % 88.1 % 87.7 %
(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.
(3) Second Quarter totals include Bollman Place (98,745 sf) located Maryland, which sold in June.
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 September 30, 2011
% of
Tenant Sq Ft SIC Code Portfolio
TCF National Bank 267,470 60 3.9 %
Quintiles Transnational Corp 259,531 87 3.7 %
CITGO Petroleum Corporation 248,399 29 3.6 %
Burger King Corporation 212,619 58 3.1 %
Denbury Onshore LLC 202,600 13 2.9 %
RGA Reinsurance Company 185,501 63 2.7 %
Citicorp Credit Services, Inc 176,848 61 2.5 %
C.H. Robinson Worldwide, Inc 153,028 47 2.2 %
SunTrust Bank 150,142 60 2.2 %
Houghton Mifflin Harcourt Publishing Company 150,050 27 2.2 %
Murphy Exploration & Production Company 144,677 13 2.1 %
Giesecke & Devrient America, Inc. 135,888 73 2.0 %
Monsanto Company 127,778 28 1.8 %
Vail Holdings, Inc. 125,313 79 1.8 %
Argo Data Resource Corporation 111,687 73 1.6 %
Northrop Grumman Systems Corporation 111,469 73 1.6 %
Alliance Data Systems 96,749 73 1.4 %
Federal National Mortgage Association 92,358 61 1.3 %
Amdocs, Inc 91,928 73 1.3 %
County of Santa Clara 90,467 91 1.3 %
Total 3,134,502 45.2 %
Franklin Street Properties Corp. Earnings Release
Supplementary Schedule I
Definition of Funds From Operations ("FFO"),
and FFO plus Gains on Sales ("FFO+GOS")

The Company evaluates the performance of its reportable segments based on several measures, including Funds From Operations ("FFO"), because management believes that FFO represents the most accurate measure of the reportable segment's activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income (determined 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 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 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