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WAKEFIELD, MA -- (MARKET WIRE) -- 11/03/09 -- Franklin Street Properties Corp. (the
"Company" or "FSP") (NYSE Amex: FSP), an investment firm specializing in
real estate, announced today Funds From Operations (FFO) of $17.5 million
or $0.25 per share for the third quarter ended September 30, 2009, which
was sequentially flat compared to the second quarter of 2009. The Company
also announced Net Income of $6.9 million and Earnings Per Share (EPS) of
$0.10 for the third quarter ended September 30, 2009.
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 Increase Increase data) 2009 2008 (Decrease) 2009 2008 (Decrease) --------- --------- ---------- --------- --------- ----------
Net Income $ 6,941 $ 7,419 $ (478) $ 19,614 $ 25,340 $ (5,726) ========= ========= ========== ========= ========= ==========
FFO $ 17,537 $ 17,085 $ 452 $ 52,284 $ 53,005 $ (721)
GOS - - - - - - --------- --------- ---------- --------- --------- ----------
FFO+GOS $ 17,537 $ 17,085 $ 452 $ 52,284 $ 53,005 $ (721) ========= ========= ========== ========= ========= ==========
Per Share Data:
EPS $ 0.10 $ 0.11 $ (0.01) $ 0.28 $ 0.36 $ (0.08)
FFO $ 0.25 $ 0.24 $ 0.01 $ 0.74 $ 0.75 $ (0.01)
GOS $ - $ - $ - $ - $ - $ -
FFO+GOS $ 0.25 $ 0.24 $ 0.01 $ 0.74 $ 0.75 $ (0.01)
Weighted average shares (diluted) 71,281 70,481 800 70,750 70,481 269 --------- --------- ---------- --------- --------- ----------
Comparing results for the third quarter of 2009 to 2008, Net Income and EPS
decreased $0.5 million or $0.01 per share; and FFO and FFO+GOS each
increased $0.5 million or $0.01 per share. The increase in FFO was
primarily from an increase in real estate FFO of $0.8 million and a
decrease in investment banking FFO of $0.4 million. The decrease from
investment banking was caused by lower sales of securities by our
investment bank, which were $4.8 million in the third quarter of 2008 as
compared to no sales of securities by our investment bank for the third
quarter of 2009. Revenue from our investment bank is primarily based on the
value of securities sales. The increase in real estate FFO was primarily
from contributions from two acquisitions made in December 2008 and two in
June 2009. There was no GOS in either the third quarter of 2009 or 2008.
Comparing results for the first nine months of 2009 to 2008, Net Income and
EPS decreased $5.7 million or $0.08 per share; and FFO and FFO+GOS each
decreased $0.7 million or $0.01 per share. The decrease in FFO was
primarily from a decrease in investment banking FFO of $4.4 million and was
partially offset by an increase in real estate FFO of $3.7 million. The
decrease from investment banking was caused by lower sales of securities by
our investment bank, which decreased $56.8 million to $550,000 for the nine
months ended September 30, 2009 compared to the nine months ended September
30, 2008. Revenue from our investment bank is primarily based on the value
of securities sales. The increase in real estate FFO was primarily from
contributions from two acquisitions made in December 2008 and two in June
2009. There was no GOS in either the first nine months of 2009 or 2008.
George J. Carter, President and CEO, commented as follows:
"For the third quarter of 2009, FSP's profits as represented by FFO+GOS
totaled approximately $17.5 million or $0.25 per share, sequentially flat
compared to the second quarter of 2009. Dividend distributions declared for
the third quarter of 2009, which are payable on November 20, 2009, will be
approximately $15.1 million or $0.19 per share.
"Significant portions of our real estate investment business, specifically
property sales and investment banking, are transactional. Similar to both
the first and second quarters of 2009, neither of these business segments
made a positive contribution to third quarter results. Substantially all
profits for the quarter were produced by our ongoing/recurring real estate
operations.
"Although FSP has certain properties in its portfolio that we would
contemplate selling, it is unlikely that near-term market conditions will
favor further dispositions. Improvement in both liquidity and pricing is
needed to help revitalize the property sales environment, and likely will
be linked to a meaningful resumption of an active and stable
mortgage-lending market for commercial real estate. However, when we
believe that the right part of the real estate cycle has returned, you can
expect to see FSP again complete property dispositions, thereby closing the
loop on our total return strategy.
"During the third quarter of 2009, our investment banking group completed
no investor capital closings and consequently operated at a loss for the
quarter which totaled approximately $0.6 million, or about $.01 per share.
Significantly, during the last two weeks of the third quarter, our
investment banking group began its first new private placement real estate
offering of 2009. Opportunistic property acquisition prospects for this
business segment are now beginning to become more visible. In addition, a
growing interest from our established investor clients to move some portion
of their capital from the sidelines to specific property investment
situations is occurring. Early analysis of this new private placement real
estate offering would suggest a moderate recommencement of this
transactional business segment. The potential for meaningful profit
contribution in 2010 and beyond from our investment banking group looks
promising but remains subject to broader capital market economic activity.
"While profits continued to suffer in the third quarter of 2009 from our
transactional businesses, our real estate portfolio of 32 properties
maintained an overall 90% occupancy and provided steady rental income. FFO
for the third quarter of 2009 was $0.25 per share, all of which came from
ongoing real estate operations net of the cost of maintaining our
investment banking capability.
"On September 30, 2009, FSP purchased an office property located in Falls
Church, Virginia for a price of $73,000,000. The property was our third
direct portfolio acquisition this year. In total the three properties
acquired to date in 2009 have added approximately 517,109 square feet for a
total investment of approximately $124,600,000. Property acquisition
efforts are active, and we would expect to acquire additional property in
2009.
"It is FSP's objective to grow our property portfolio and rental income
business during this period of liquidity-constrained capital markets. In
addition to using our balance sheet strength to help finance and fund new
acquisitions, raising equity by issuing additional shares of our common
stock for sale to the broader public markets will also be considered as a
part of our capital funding/property acquisition/growth strategy. The
timing and execution of such capital events will be subject to, among other
things, the size and amount of our specific property acquisition
opportunities and the acceptance of our shares by the public capital
markets. An initial execution of this component of our growth funding plan
was completed on September 23, 2009 with our first-ever underwritten public
offering of 9.2 million shares of our common stock at a price to the public
of $13 per share. The offering resulted in net proceeds to the Company of
approximately $114.7 million net of underwriter's discounts and offering
costs. A portion of those proceeds was used to complete the Falls Church,
Virginia, property acquisition on September 30. We continue to be very
optimistic about FSP's position in the current commercial real estate
investment market and the opportunities that are presenting themselves to
acquire commercial properties at better pricing and value metrics than we
have seen in the last several years."
Dividend Announcement
On October 16, 2009, the Board of Directors of the Company declared a cash
distribution of $0.19 per share of common stock payable on November 20,
2009 to stockholders of record on October 30, 2009.
Real Estate Update
On September 30, 2009 we acquired an office property in Falls Church,
Virginia for approximately $73 million. Supplementary Schedules D & E
provide property information for our continuing real estate portfolio of 32
properties and for three non-consolidated REITs that we have interests in
as of September 30, 2009. 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 H. We
believe FFO is used broadly throughout the real estate investment trust
(REIT) industry as a measurement of performance and is generally calculated
in a similar manner to our calculation. We also believe that FFO+GOS is an
important measure as it considers investment performance.
Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------
(In thousands, except per share amounts) 2009 2008 2009 2008 -------- -------- -------- --------
Net income $ 6,941 $ 7,419 $ 19,614 $ 25,340 (Gain) Loss on sale of properties - - - - GAAP (income) loss from non-consolidated REITs (475) (679) (1,710) (2,167) Distributions from non-consolidated REITs 1,119 1,561 4,257 3,838 Acquisition costs of new properties 391 - 639 - Depreciation of real estate & intangible amortization 9,561 8,784 29,484 25,994 -------- -------- -------- --------
Funds From Operations (FFO) 17,537 17,085 52,284 53,005 Plus gains on sales of properties - - - - -------- -------- -------- --------
FFO+GOS $ 17,537 $ 17,085 $ 52,284 $ 53,005 ======== ======== ======== ========
Per Share Data
EPS $ 0.10 $ 0.11 $ 0.28 $ 0.36
FFO $ 0.25 $ 0.24 $ 0.74 $ 0.75
GOS $ - $ - $ - $ -
FFO+GOS $ 0.25 $ 0.24 $ 0.74 $ 0.75
Weighted average shares (basic and diluted) 71,281 70,481 70,750 70,481 ======== ======== ======== ========
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 4, 2009 at 10:00 a.m. (ET) to
discuss the third quarter 2009 results. The toll free number is
1-866-700-7101, passcode 33138194. Internationally, the call may be
accessed by dialing 1-617-213-8837, passcode 33138194. 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, 2008), 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, 2008, 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
Largest 20 Tenants - FSP Owned Portfolio G
Definition of Funds From Operations (FFO) and FFO+GOS H Franklin Street Properties Corp. Financial Results Supplementary Schedule A Condensed Consolidated Income Statements (Unaudited) For the For the Three Months Ended Nine Months Ended September 30, September 30, ------------------ ------------------
(in thousands, except per share amounts) 2009 2008 2009 2008 -------- -------- -------- --------
Revenue: Rental $ 31,702 $ 27,927 $ 90,774 $ 82,283
Related party revenue: Syndication fees - 304 39 3,766 Transaction fees 1 300 543 3,606 Management fees and interest income from loans 370 380 1,232 1,364
Other 19 13 55 52 -------- -------- -------- -------- Total revenue 32,092 28,924 92,643 91,071 -------- -------- -------- --------
Expenses: Real estate operating expenses 7,752 7,159 22,176 20,973 Real estate taxes and insurance 5,364 4,590 14,879 13,375 Depreciation and amortization 8,801 7,666 26,940 22,616 Selling, general and administrative 2,243 1,927 6,378 6,557 Commissions 8 208 178 2,020 Interest 1,744 1,108 4,920 3,351 -------- -------- -------- -------- Total expenses 25,912 22,658 75,471 68,892 -------- -------- -------- --------
Income before interest income, equity in earnings of non-consolidated REITs and taxes 6,180 6,266 17,172 22,179
Interest income 16 177 88 657
Equity in earnings of non-consolidated REITs 475 679 1,710 2,167 -------- -------- -------- --------
Income before taxes 6,671 7,122 18,970 25,003
Income tax benefit (270) (297) (644) (337) -------- -------- -------- --------
Net income $ 6,941 $ 7,419 $ 19,614 $ 25,340 ======== ======== ======== ========
Weighted average number of shares outstanding, basic and diluted 71,281 70,481 70,750 70,481 ======== ======== ======== ========
Net income per share, basic and diluted $ 0.10 $ 0.11 $ 0.28 $ 0.36 ======== ======== ======== ======== Franklin Street Properties Corp. Financial Results Supplementary Schedule B Condensed Consolidated Balance Sheets (Unaudited)
(in thousands, except share and par September 30, December 31, value amounts) ------------ ------------ 2009 2008 ------------ ------------
Assets:
Real estate assets, net $ 926,555 $ 844,058
Acquired real estate leases, less accumulated amortization of $35,106 and $29,200, respectively 48,003 28,518
Investment in non-consolidated REITs 93,936 83,046
Assets held for syndication, net - 13,254
Cash and cash equivalents 26,385 29,244
Restricted cash 331 336
Tenant rent receivables, less allowance for doubtful accounts of $620 and $509, respectively 1,400 1,329
Straight-line rent receivable, less allowance for doubtful accounts of $100 and $261, respectively 9,724 8,816
Prepaid expenses 3,430 2,206
Related party mortgage loan receivable 23,264 1,125
Other assets 1,452 2,406
Office computers and furniture, net of accumulated depreciation of $1,194 and $1,108, respectively 408 281
Deferred leasing commissions, net of accumulated amortization of $4,820, and $3,416, respectively 10,887 10,814 ------------ ------------ Total assets $ 1,145,775 $ 1,025,433 ============ ============
Liabilities and Stockholders? Equity:
Liabilities: Bank note payable $ 91,008 $ 67,468 Term loan payable 75,000 75,000 Accounts payable and accrued expenses 25,351 22,297 Accrued compensation 750 1,654 Tenant security deposits 1,757 1,874 Other liabilities: derivative termination value 2,269 3,099 Acquired unfavorable real estate leases, less accumulated amortization of $2,440, and $1,779, respectively 5,661 5,044 ------------ ------------ Total liabilities 201,796 176,436 ------------ ------------
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, 79,680,705 and 70,480,705 shares issued and outstanding, respectively 8 7 Additional paid-in capital 1,003,729 889,019 Accumulated other comprehensive loss (2,269) (3,099) Accumulated distributions in excess of accumulated earnings (57,489) (36,930) ------------ ------------ Total stockholders? equity 943,979 848,997 ------------ ------------ Total liabilities and stockholders? equity $ 1,145,775 $ 1,025,433 ============ ============ 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) 2009 2008 -------- --------
Cash flows from operating activities: Net income $ 19,614 $ 25,340 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 27,141 22,649 Amortization of above market lease 2,544 3,376 Equity in earnings of non-consolidated REITs (1,710) (2,167) Distributions from non-consolidated REITs 4,257 3,838 Increase in bad debt reserve 111 79 Changes in operating assets and liabilities: Restricted cash 5 - Tenant rent receivables, net (182) 219 Straight-line rents, net (849) (854) Prepaid expenses and other assets, net (472) (1,474) Accounts payable, accrued expenses 4,294 3,863 Accrued compensation (904) 88 Tenant security deposits (117) (51) Payment of deferred leasing commissions (2,202) (2,434) -------- -------- Net cash provided by operating activities 51,530 52,472 -------- --------
Cash flows from investing activities: Purchase of real estate assets, office computers and furniture, capitalized merger costs and acquired real estate leases (130,819) (39,282) Investment in non-consolidated REITs (13,200) (10) Investment in related party mortgage loan receivable (22,139) (1,125) Investment in assets held for syndication 13,017 12,235 -------- -------- Net cash used in investing activities (153,141) (28,182) -------- --------
Cash flows from financing activities: Distributions to stockholders (40,173) (57,089) Equity offering 115,385 - Borrowings under bank note payable 23,540 20,368 Deferred financing costs - (30) -------- -------- Net cash provided by (used in) financing activities 98,752 (36,751) -------- --------
Net decrease in cash and cash equivalents (2,859) (12,461)
Cash and cash equivalents, beginning of period 29,244 46,988 -------- --------
Cash and cash equivalents, end of period $ 26,385 $ 34,527 ======== ======== 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 ------------ ----------- 2009 488,456 8.2% 2010 761,351 12.8% 2011 384,237 6.5% 2012 647,178 10.9% 2013 349,015 5.9% 2014 584,389 9.8% Thereafter (2) 2,719,998 45.9% ------------ ----------- 5,934,624 100.0% ============ =========== (1) Percentages are determined based upon square footage of expiring commercial leases. (2) Includes 468,000 square feet of current vacancies.
(In Thousands) As of September 30, 2009 ----------------------------------------------------------- # of % of Square % of
State Properties Investment Portfolio Feet Portfolio ----------- ----------- ---------- ----------- ----------
Texas 7 $ 229,853 24.8% 1,489 25.1%
Virginia 5 161,198 17.4% 933 15.7%
Colorado 4 128,819 13.9% 792 13.3%
Georgia 1 76,152 8.2% 387 6.5%
Missouri 3 73,009 7.9% 477 8.0%
Maryland 2 61,888 6.7% 424 7.1%
Florida 1 48,389 5.2% 213 3.6%
Indiana 1 36,725 4.0% 205 3.5%
Illinois 1 30,424 3.3% 177 3.0%
California 2 21,520 2.3% 182 3.1%
Michigan 1 14,884 1.6% 215 3.6%
Washington 1 14,864 1.6% 117 2.0%
Minnesota 1 14,657 1.6% 153 2.6%
North Carolina 2 14,172 1.5% 172 2.9% ----------- ----------- ---------- ----------- ---------- 32 $ 926,555 100.0% 5,935 100.0% =========== =========== ========== =========== ==========
Property by type:
(dollars & square feet As of September 30, 2009 in 000's) # of % of Square % of
Type Properties Investment Portfolio Feet Portfolio ----------- ----------- ---------- ----------- ----------
Office 31 $ 921,499 99.5% 5,836 98.3%
Industrial 1 5,056 0.5% 99 1.7% 32 $ 926,555 100.0% 5,935 100.0% 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-09 30-Sep-08 ---------- ----------
Tenant improvements $ 3,217 $ 4,564
Deferred leasing costs 2,202 2,434
Building improvements 846 1,310 ---------- ---------- $ 6,265 $ 8,308 ========== ==========
Square foot & leased percentages September 30, December 31, ----------- ----------- 2009 2008 ----------- -----------
Owned portfolio of commercial real estate Number of properties 32 29 Square feet 5,934,624 5,417,515 Leased percentage 90% 93%
Investments in non-consolidated commercial real estate Number of properties 3 2 Square feet 1,995,041 1,461,224 Leased percentage 78% 80%
Single Asset REITs (SARs) managed Number of properties 9 10 Square feet* 2,155,201 2,684,561 Leased percentage* 90% 92%
Total owned, investments & managed properties Number of properties* 44 41 Square feet* 10,084,866 9,563,300 Leased percentage* 88% 93%
*Excludes a property to be constructed with approximately 285,000 square
feet.
The following table shows property information for our investments in
non-consolidated REITs: Square % Leased
Single Asset REIT name City State Feet 30-Sep-09 ----------- ------ --------- ---------
FSP 303 East Wacker Drive Corp. Chicago IL 844,081 75.28%
FSP Grand Boulevard Corp. Kansas City MO 532,453 88.64%
FSP Phoenix Tower Corp. Houston TX 618,507 73.95% --------- --------- 1,995,041 78.43% --------- --------- Franklin Street Properties Corp. Earnings Release Supplementary Schedule F: Prior 4 Quarter Information (Unaudited)
(in 000's) Q2 Q1 Q4 Q3
Revenue: 2009 2009 2008 2008 -------- -------- -------- -------- Rental $ 29,254 $ 29,818 $ 28,915 $ 27,927 Related party revenue: Syndication fees 29 10 - 304 Transaction fees 514 28 35 300 Management fees and interest income from loans 317 545 375 380 Other 18 18 20 13 -------- -------- -------- -------- Total revenue 30,132 30,419 29,345 28,924 -------- -------- -------- --------
Expenses: Real estate operating expenses 7,144 7,280 8,026 7,159 Real estate taxes and insurance 4,686 4,829 4,366 4,590 Depreciation and amortization 10,225 7,914 7,744 7,666 Selling, general and administrative 2,127 2,008 1,711 1,927 Commissions 40 130 131 208 Interest 1,599 1,577 1,570 1,108 -------- -------- -------- -------- Total expenses 25,821 23,738 23,548 22,658 -------- -------- -------- -------- Income before interest income, equity in earnings in non-consolidated REITs 4,311 6,681 5,797 6,266 Interest income 36 36 89 177 Equity in earnings in non-consolidated REITs 443 792 580 679 -------- -------- -------- -------- Income before taxes on income 4,790 7,509 6,466 7,123 Taxes on income (75) (299) (153) (297) -------- -------- -------- -------- Income from continuing operations 4,865 7,808 6,619 7,419 Income from discontinued operations - - - - -------- -------- -------- -------- Income before gain on sale of properties 4,865 7,808 6,619 7,419 Gain on sale of assets - - - - -------- -------- -------- -------- Net income $ 4,865 $ 7,808 $ 6,619 $ 7,419 ======== ======== ======== ========
FFO and FFO+GOS calculations:
Net income $ 4,865 $ 7,808 $ 6,619 $ 7,419 -------- -------- -------- -------- (Gain) Loss on sale of assets - - - - GAAP income from non-consolidated REITs (443) (792) (580) (679) Distributions from non-consolidated REITs 1,523 1,615 1,510 1,561 Acquisition costs 248 - - - Depreciation & amortization 11,216 8,707 8,650 8,784 -------- -------- -------- --------
Funds From Operations (FFO) 17,409 17,338 16,199 17,085 Plus gains on sales of assets - - - - -------- -------- -------- --------
FFO+GOS $ 17,409 $ 17,338 $ 16,199 $ 17,085 ======== ======== ======== ======== Franklin Street Properties Corp. Earnings Release Supplementary Schedule G Largest 20 Tenants - FSP Owned Portfolio As of September 30, 2009 (Unaudited & Estimated) The following table includes the largest 20 tenants in FSP's owned portfolio based on square feet leased. SIC % of Tenant Sq Ft Code Portfolio --------- ---- --------
1 Capital One Services, Inc. (1) 297,789 61 5.0%
2 Noblis, Inc. 252,613 54 4.2%
3 Citgo Petroleum Corporation 248,399 29 4.2%
4 Tektronix Texas, LLC 241,372 73 4.0%
5 Burger King Corporation 212,619 58 3.6%
6 New Era of Networks, Inc. (Sybase) 199,077 73 3.4%
7 RGA Reinsurance Company 185,501 63 3.1%
8 Citigroup Credit Services, Inc (2) 176,848 61 3.0%
9 CH Robinson Worldwide, Inc. 153,028 47 2.6%
10 Geisecke & Devrient 135,888 73 2.3%
11 Murphy Exploration & Production Company 133,786 13 2.2%
12 CACI Technologies, Inc. 132,896 73 2.2%
13 Monsanto Company 127,778 28 2.2%
14 Northrop Grumman Information Technology, Inc. 111,469 73 1.9%
15 Maines Paper & Food Service, Inc. 98,745 51 1.7%
16 Amdocs, Inc. 91,928 73 1.6%
17 County of Santa Clara 90,467 81 1.5%
18 Ober Kaler Grimes & Shriver 88,736 91 1.5%
19 Technip-Coflexip USA Holdings, Inc 86,059 13 1.4%
20 Vail Holding Corp d/b/a Vail Resorts 83,620 79 1.4% --------- -------- Total 3,148,618 53.0% --------- --------
(1) The lease with Capital One Services, Inc. expired on October 31, 2009.
(2) The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup. Franklin Street Properties Corp. Earnings Release Supplementary Schedule H 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") and FFO plus
Gains on Sales ("FFO+GOS") as management believes they represent important
measures of activity and are an important consideration in determining
distributions paid to equity holders. The Company defines FFO as net
income (computed in accordance with generally accepted accounting
principles, or GAAP), excluding gains (or losses) from sales of property
and acquisition costs of newly acquired properties that are not
capitalized, plus depreciation and amortization, 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. The Company defines FFO+GOS as FFO as defined above, plus gains (or
losses) from sales of properties and provisions for assets held for sale,
if applicable.
FFO and FFO+GOS should not be considered as alternatives to net income
(determined in accordance with GAAP), as indicators of the Company's
financial performance, nor as alternatives to cash flows from operating
activities (determined in accordance with GAAP), nor as measures of the
Company's liquidity, nor are they necessarily indicative of sufficient cash
flow to fund all of the Company's needs. Other real estate companies may
define these terms in a different manner. We believe that in order to
facilitate a clear understanding of the results of the Company, FFO and
FFO+GOS should be examined in connection with net income and cash flows
from operating, investing and financing activities in the condensed
consolidated financial statements.
Contact:
John Demeritt
877-686-9496
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