Exhibit 99.1
| PRESS RELEASE | Franklin Street Properties Corp. |
401 Edgewater Place · Suite 200 · Wakefield, Massachusetts 01880-6210 · (781) 557-1300 · www.franklinstreetproperties.com | |
Contact: John Demeritt 877-686-9496 | FOR IMMEDIATE RELEASE |
FRANKLIN STREET PROPERTIES CORP. ANNOUNCES
FIRST QUARTER 2009 RESULTS
Wakefield, MA—April 28, 2009—Franklin Street Properties Corp. (the “Company” or “FSP”) (NYSE Amex: FSP), an investment firm specializing in real estate, announced today Net Income of $7.8 million and Earnings Per Share (EPS) of $0.11 for the first quarter ended March 31, 2009. The Company also announced Funds From Operations (FFO) of $17.3 million or $0.25 per share for the first quarter ended March 31, 2009 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 3 of this press release.
| (in 000's except per share data) | Three Months Ended March 31, | |||||||||||
| 2009 | 2008 | Increase (Decrease) | ||||||||||
| Net Income | $ | 7,808 | $ | 7,386 | $ | 422 | ||||||
| FFO | $ | 17,338 | $ | 15,637 | $ | 1,701 | ||||||
| GOS | - | - | - | |||||||||
| FFO+GOS | $ | 17,338 | $ | 15,637 | $ | 1,701 | ||||||
| Per Share Data: | ||||||||||||
| EPS | $ | 0.11 | $ | 0.10 | $ | 0.01 | ||||||
| FFO | $ | 0.25 | $ | 0.22 | $ | 0.03 | ||||||
| GOS | $ | - | $ | - | $ | - | ||||||
| FFO+GOS | $ | 0.25 | $ | 0.22 | $ | 0.03 | ||||||
| Weighted ave shares (diluted) | 70,481 | 70,481 | - | |||||||||
Comparing results for the first quarter of 2009 to 2008, Net Income and EPS increased $0.4 million or $0.01 per share, FFO increased $1.7 million or $0.03 per share and FFO+GOS increased $1.7 million or $0.03 per share. Comparing FFO results for the first quarter of 2009 to 2008, the increase was primarily attributable to an increase in real estate FFO of $2.0 million that arose from the performance of acquisitions and from net leasing revenues from our existing portfolio.
These increases were partially offset by a decrease in FFO from investment banking of $0.3 million, which was caused by lower sales of securities by our investment bank, which decreased $2.6 million to $175,000 for the first quarter of 2009 compared to $2.7 million for the first quarter of 2008. Revenue from our investment bank is primarily based on the value of these securities sales. There was no GOS in the first quarter of 2009 or 2008.
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George J. Carter, President and CEO, commented as follows:
“For the first quarter of 2009, FSP’s profits as represented by FFO+GOS totaled approximately $17.3 million or $0.25 per share. Dividend distributions declared for the first quarter of 2009, which are payable on May 20, 2009, will be approximately $13.4 million or $0.19 per share.
Significant portions of our real estate investment business, specifically property sales and investment banking, are transactional. Neither of these business segments made a positive contribution to the first quarter. Substantially all profits for the quarter were produced by our ongoing/recurring rental operations.
Although FSP has certain properties in its portfolio that we would contemplate selling, we have not listed any property for sale because of current adverse market conditions. Rather than sell in this negative environment, FSP continues to postpone consideration of the sale of some properties until a more attractive environment establishes itself, particularly within the mortgage/debt markets. A time frame for improvement in these markets continues to be hard to predict. However, we continue to constantly evaluate property disposition opportunities.
During the first quarter of 2009, our investment banking group raised $175,000 of equity capital, an insignificant contribution and similar to the fourth quarter of 2008. Concern and uncertainty continues to surround the potential impact on commercial real estate emanating from the U.S. recession and financial credit crisis, and our established investor clients continue to sit on the sidelines until a clearer sense of stability returns to the broader capital markets before considering significant investment purchases. The lack of equity raising activity resulted in our investment banking business segment operating at a loss for the first quarter totaling approximately $0.8 million or $0.01 per share. We anticipate business in this area to remain very volatile quarter-to-quarter as long as broader investment market activity and financial events continue to meaningfully sway investor confidence and sentiment.
While profits continued to suffer in the first quarter of 2009 from our transactional businesses, our real estate portfolio of 29 properties maintained its overall 93% occupancy and provided steady rental income. FFO for the first quarter of 2009 was $0.25 per share, all of which came from real estate operations net of the cost of maintaining our investment banking capability.
During the first quarter of 2009, FSP did not purchase any new properties for our portfolio. A number of potentially attractive property investment opportunities were analyzed, but ultimately were not purchased during the quarter. Continued active property acquisition efforts are ongoing and we would expect to acquire additional properties in 2009. Our three property acquisitions made during 2008 are now fully contributing to FSP’s rental revenue and FFO growth.
As the capital markets and U.S. economy work through the current recession and financial/credit crisis, we will continue to pursue additional commercial property investment opportunities. It will be FSP’s objective to continue to grow our property portfolio and rental income business during this period of liquidity-constrained capital markets by using our balance sheet strength to help finance and fund new acquisitions. 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.”
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Dividend Announcement
On April 17, 2009, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended March 31, 2009 of $0.19 per share of common stock payable on May 20, 2009 to stockholders of record on April 30, 2009.
Real Estate Update
Supplementary Schedules D & E provide property information for our continuing real estate portfolio of 29 properties and for two non-consolidated REITs that we have interests in as of March 31, 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 | ||||||||
| March 31, | ||||||||
| (In thousands, except per share amounts) | 2009 | 2008 | ||||||
| Net income | $ | 7,808 | $ | 7,386 | ||||
| (Gain) Loss on sale of properties | - | - | ||||||
| GAAP income from non-consolidated REITs | (792 | ) | (793 | ) | ||||
| Distributions from non-consolidated REITs | 1,615 | 546 | ||||||
| Depreciation of real estate & intangible amortization | 8,707 | 8,498 | ||||||
| Funds From Operations (FFO) | 17,338 | 15,637 | ||||||
| Plus gains on sales of properties (GOS) | - | - | ||||||
| FFO+GOS | $ | 17,338 | $ | 15,637 | ||||
| Per Share Data | ||||||||
| EPS | $ | 0.11 | $ | 0.10 | ||||
| FFO | $ | 0.25 | $ | 0.22 | ||||
| GOS | $ | - | $ | - | ||||
| FFO+GOS | $ | 0.25 | $ | 0.22 | ||||
| Weighted average shares (basic and diluted) | 70,481 | 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 April 29, 2009 at 10:00 a.m. (ET) to discuss the first quarter 2009 results. The toll free number is 1-866-804-6929, passcode 98851183. Internationally, the call may be accessed by dialing 1-857-350-1675, passcode 98851183. 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.
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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 |
| Prior 4 Quarters Information | F |
| Largest 20 Tenants – FSP Owned Portfolio | G |
| Definition of Funds From Operations (FFO) and FFO+GOS | H |
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Franklin Street Properties Corp. Financial Results
Supplementary Schedule A
Condensed Consolidated Income Statements
(Unaudited)
For the Three Months Ended March 31, | ||||||||
| (in thousands, except per share amounts) | 2009 | 2008 | ||||||
| Revenue: | ||||||||
| Rental | $ | 29,818 | $ | 26,656 | ||||
| Related party revenue: | ||||||||
| Syndication fees | 10 | 205 | ||||||
| Transaction fees | 28 | 168 | ||||||
| Management fees and interest income from loans | 545 | 561 | ||||||
| Other | 18 | 20 | ||||||
| Total revenue | 30,419 | 27,610 | ||||||
| Expenses: | ||||||||
| Real estate operating expenses | 7,280 | 6,699 | ||||||
| Real estate taxes and insurance | 4,829 | 4,279 | ||||||
| Depreciation and amortization | 7,914 | 7,359 | ||||||
| Selling, general and administrative | 2,008 | 2,009 | ||||||
| Commissions | 130 | 158 | ||||||
| Interest | 1,577 | 1,192 | ||||||
| Total expenses | 23,738 | 21,696 | ||||||
| Income before interest income, equity in earnings of non-consolidated REITs and taxes | 6,681 | 5,914 | ||||||
| Interest income | 36 | 303 | ||||||
| Equity in earnings of non-consolidated REITs | 792 | 793 | ||||||
| Income before taxes | 7,509 | 7,010 | ||||||
| Income tax benefit | (299 | ) | (376 | ) | ||||
| Net income | $ | 7,808 | $ | 7,386 | ||||
| Weighted average number of shares outstanding, basic and diluted | 70,481 | 70,481 | ||||||
| Net income per share, basic and diluted | $ | 0.11 | $ | 0.10 | ||||
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Franklin Street Properties Corp. Financial Results
Supplementary Schedule B
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands, except share and par value amounts) | March 31, | December 31, | ||||||
| 2009 | 2008 | |||||||
| Assets: | ||||||||
| Real estate assets, net | $ | 839,826 | $ | 844,058 | ||||
| Acquired real estate leases, less accumulated amortization | ||||||||
| of $30,431 and $29,200, respectively | 26,042 | 28,518 | ||||||
| Investment in non-consolidated REITs | 82,388 | 83,046 | ||||||
| Assets held for syndication, net | 13,004 | 13,254 | ||||||
| Cash and cash equivalents | 27,650 | 29,244 | ||||||
| Restricted cash | 336 | 336 | ||||||
| Tenant rent receivables, less allowance for doubtful accounts | ||||||||
| of $595 and $509, respectively | 1,084 | 1,329 | ||||||
| Straight-line rent receivable, less allowance for doubtful accounts | ||||||||
| of $261 and $261, respectively | 9,190 | 8,816 | ||||||
| Prepaid expenses | 2,253 | 2,206 | ||||||
| Related party mortgage loan receivable | 4,725 | 1,125 | ||||||
| Other assets | 1,162 | 2,406 | ||||||
| Office computers and furniture, net of accumulated depreciation | ||||||||
| of $1,135 and $1,108, respectively | 355 | 281 | ||||||
| Deferred leasing commissions, net of accumulated amortization | ||||||||
| of $3,898, and $3,416, respectively | 10,493 | 10,814 | ||||||
| Total assets | $ | 1,018,508 | $ | 1,025,433 | ||||
| Liabilities and Stockholders’ Equity: | ||||||||
| Liabilities: | ||||||||
| Bank note payable | $ | 72,468 | $ | 67,468 | ||||
| Term loan payable | 75,000 | 75,000 | ||||||
| Accounts payable and accrued expenses | 17,687 | 22,297 | ||||||
| Accrued compensation | 250 | 1,654 | ||||||
| Tenant security deposits | 1,795 | 1,874 | ||||||
| Other liabilities: derivative termination value | 3,080 | 3,099 | ||||||
Acquired unfavorable real estate leases, less accumulated amortization of $2,027, and $1,779, respectively | 4,795 | 5,044 | ||||||
| Total liabilities | 175,075 | 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, 70,480,705 and 70,480,705 shares issued and outstanding, respectively | 7 | 7 | ||||||
| Additional paid-in capital | 889,019 | 889,019 | ||||||
| Accumulated other comprehensive loss | (3,080 | ) | (3,099 | ) | ||||
| Accumulated distributions in excess of accumulated earnings | (42,513 | ) | (36,930 | ) | ||||
| Total stockholders’ equity | 843,433 | 848,997 | ||||||
| Total liabilities and stockholders’ equity | $ | 1,018,508 | $ | 1,025,433 | ||||
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Franklin Street Properties Corp. Financial Results
Supplementary Schedule C
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the Three Months Ended March 31, | ||||||||
| (in thousands) | 2009 | 2008 | ||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 7,808 | $ | 7,386 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization expense | 7,981 | 7,371 | ||||||
| Amortization of above market lease | 793 | 1,139 | ||||||
| Equity in earnings of non-consolidated REITs | (792 | ) | (793 | ) | ||||
| Distributions from non-consolidated REITs | 1,615 | 546 | ||||||
| Increase in bad debt reserve | 86 | 79 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Tenant rent receivables, net | 159 | (301 | ) | |||||
| Straight-line rents, net | (374 | ) | (251 | ) | ||||
| Prepaid expenses and other assets, net | (171 | ) | (376 | ) | ||||
| Accounts payable, accrued expenses | (3,154 | ) | (4,379 | ) | ||||
| Accrued compensation | (1,404 | ) | (1,148 | ) | ||||
| Tenant security deposits | (79 | ) | 49 | |||||
| Payment of deferred leasing commissions | (162 | ) | (818 | ) | ||||
| Net cash provided by operating activities | 12,306 | 8,504 | ||||||
| Cash flows from investing activities: | ||||||||
| Purchase of real estate assets and office computers and furniture, capitalized merger costs | (3,295 | ) | (1,777 | ) | ||||
| Changes in deposits on real estate assets | 1,300 | - | ||||||
| Investment in related party mortgage loan receivable | (3,600 | ) | (1,000 | ) | ||||
| Investment in assets held for syndication | 86 | 1,391 | ||||||
| Net cash used in investing activities | (5,509 | ) | (1,386 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Distributions to stockholders | (13,391 | ) | (21,849 | ) | ||||
| Borrowings under bank note payable | 5,000 | - | ||||||
| Deferred financing costs | - | (30 | ) | |||||
| Net cash used in financing activities | (8,391 | ) | (21,879 | ) | ||||
| Net decrease in cash and cash equivalents | (1,594 | ) | (14,761 | ) | ||||
| Cash and cash equivalents, beginning of year | 29,244 | 46,988 | ||||||
| Cash and cash equivalents, end of year | $ | 27,650 | $ | 32,227 | ||||
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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 | 593,626 | 11.0% | |
| 2010 | 752,760 | 13.9% | |
| 2011 | 376,047 | 6.9% | |
| 2012 | 759,077 | 14.0% | |
| 2013 | 342,809 | 6.3% | |
| 2014 | 482,804 | 8.9% | |
| Thereafter (2) | 2,110,392 | 39.0% | |
| 5,417,515 | 100.0% | ||
| (1) | Percentages are determined based upon square footage of expiring commercial leases. |
| (2) | Includes 370,000 square feet of current vacancies. |
| (dollars & square feet in 000's) | As of March 31, 2009 | |||||
| # of | % of | Square | % of | |||
| State | Properties | Investment | Portfolio | Feet | Portfolio | |
| Texas | 7 | $ 232,918 | 27.8% | 1,489 | 27.4% | |
| Colorado | 4 | 130,460 | 15.5% | 791 | 14.6% | |
| Virginia | 3 | 79,826 | 9.5% | 569 | 10.5% | |
| Georgia | 1 | 77,271 | 9.2% | 387 | 7.1% | |
| Missouri | 3 | 73,779 | 8.8% | 477 | 8.8% | |
| Maryland | 2 | 62,661 | 7.5% | 424 | 7.8% | |
| Florida | 1 | 48,980 | 5.8% | 213 | 3.9% | |
| Indiana | 1 | 37,186 | 4.4% | 205 | 3.8% | |
| Illinois | 1 | 31,076 | 3.7% | 177 | 3.3% | |
| California | 2 | 21,264 | 2.5% | 182 | 3.4% | |
| Michigan | 1 | 15,078 | 1.8% | 215 | 4.0% | |
| Washington | 1 | 14,939 | 1.8% | 117 | 2.2% | |
| North Carolina | 2 | 14,388 | 1.7% | 172 | 3.2% | |
| 29 | $ 839,826 | 100.0% | 5,418 | 100.0% | ||
| Property by type: | ||||||
| (dollars & square feet in 000's) | As of March 31, 2009 | |||||
| # of | % of | Square | % of | |||
| Type | Properties | Investment | Portfolio | Feet | Portfolio | |
| Office | 28 | $ 834,711 | 99.4% | 5,319 | 98.2% | |
| Industrial | 1 | 5,114 | 0.6% | 99 | 1.8% | |
| 29 | $ 839,826 | 100.0% | 5,418 | 100.0% | ||
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Franklin Street Properties Corp. Earnings Release
Supplementary Schedule E
Portfolio and Other Supplementary Information
(Unaudited & Approximated)
| Capital Expenditures | ||||||||
| Owned Portfolio | Three Months Ended | |||||||
| (in thousands) | 31-Mar-09 | 31-Mar-08 | ||||||
| Tenant improvements | $ | 1,374 | $ | 2,337 | ||||
| Deferred leasing costs | 162 | 817 | ||||||
| Building improvements | 465 | 197 | ||||||
| $ | 2,001 | $ | 3,351 | |||||
| Square foot & leased percentages | March 31, | December 31, | ||
| 2009 | 2008 | |||
| Owned portfolio of commercial real estate | ||||
| Number of properties | 29 | 29 | ||
| Square feet | 5,417,515 | 5,417,515 | ||
| Leased percentage | 93% | 93% | ||
| Investments in non-consolidated commercial real estate | ||||
| Number of properties | 2 | 2 | ||
| Square feet | 1,461,224 | 1,461,224 | ||
| Leased percentage | 79% | 80% | ||
| Single Asset REITs (SARs) managed | ||||
| Number of properties | 10 | 10 | ||
| Square feet* | 2,684,561 | 2,684,561 | ||
| Leased percentage* | 88% | 92% | ||
| Total owned, investments & managed properties | ||||
| Number of properties | 41 | 41 | ||
| Square feet* | 9,563,300 | 9,563,300 | ||
| Leased percentage* | 90% | 91% | ||
| *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 | % Interest | |||
| Single Asset REIT Name | City | State | Feet | 31-Mar-09 | Held |
| FSP 303 East Wacker Drive Corp. | Chicago | IL | 842,717 | 85.8% | 43.7% |
| FSP Phoenix Tower Corp. | Houston | TX | 618,507 | 70.7% | 4.6% |
| 1,461,224 | 79.4% |
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Franklin Street Properties Corp. Earnings Release
Supplementary Schedule F: Prior 4 Quarters Information
(Unaudited)
| (in thousands) | ||||||||||||||||
Q1 | Q2 | Q3 | Q4 | |||||||||||||
| Revenue: | 2008 | 2008 | 2008 | 2008 | ||||||||||||
| Rental | $ | 26,656 | $ | 27,700 | $ | 27,927 | $ | 28,915 | ||||||||
| Related party revenue: | ||||||||||||||||
| Syndication fees | 205 | 3,257 | 304 | - | ||||||||||||
| Transaction fees | 168 | 3,138 | 300 | 35 | ||||||||||||
| Management fees and interest income from loans | 561 | 423 | 380 | 375 | ||||||||||||
| Other | 20 | 19 | 13 | 20 | ||||||||||||
| Total revenue | 27,610 | 34,537 | 28,924 | 29,345 | ||||||||||||
| Expenses: | ||||||||||||||||
| Real estate operating expenses | 6,698 | 7,116 | 7,159 | 8,026 | ||||||||||||
| Real estate taxes and insurance | 4,279 | 4,505 | 4,590 | 4,366 | ||||||||||||
| Depreciation and amortization | 7,359 | 7,591 | 7,666 | 7,744 | ||||||||||||
| Selling, general and administrative | 2,009 | 2,621 | 1,927 | 1,711 | ||||||||||||
| Commissions | 158 | 1,654 | 208 | 131 | ||||||||||||
| Interest | 1,192 | 1,051 | 1,108 | 1,570 | ||||||||||||
| Total expenses | 21,695 | 24,538 | 22,658 | 23,548 | ||||||||||||
| Income before interest income, equity | ||||||||||||||||
| in earnings in non-consolidated REITs | 5,915 | 9,999 | 6,266 | 5,797 | ||||||||||||
| Interest income | 303 | 176 | 177 | 89 | ||||||||||||
| Equity in earnings in non-consolidated REITs | 793 | 694 | 680 | 580 | ||||||||||||
| Income before taxes on income | 7,011 | 10,869 | 7,123 | 6,466 | ||||||||||||
| Taxes on income | (375 | ) | 335 | (297 | ) | (153 | ) | |||||||||
| Income from continuing operations | 7,386 | 10,534 | 7,420 | 6,619 | ||||||||||||
| Loss from discontinued operations | - | - | - | - | ||||||||||||
| Gain on sale of assets | - | - | - | - | ||||||||||||
| Net income | $ | 7,386 | $ | 10,534 | $ | 7,420 | $ | 6,619 | ||||||||
| FFO and FFO+GOS calculations: | ||||||||||||||||
| Net income | $ | 7,386 | $ | 10,534 | $ | 7,420 | $ | 6,619 | ||||||||
| (Gain) loss on sale of assets | - | - | - | - | ||||||||||||
| GAAP (income) from non-consolidated REITs | (793 | ) | (694 | ) | (680 | ) | (580 | ) | ||||||||
| Distributions from non-consolidated REITs | 546 | 1,731 | 1,561 | 1,510 | ||||||||||||
| Depreciation & amortization | 8,498 | 8,712 | 8,783 | 8,650 | ||||||||||||
| Funds From Operations (FFO) | 15,637 | 20,283 | 17,084 | 16,199 | ||||||||||||
| Plus gains on sales of assets (GOS) | - | - | - | - | ||||||||||||
| FFO+GOS | $ | 15,637 | $ | 20,283 | $ | 17,084 | $ | 16,199 | ||||||||
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Franklin Street Properties Corp. Earnings Release
Supplementary Schedule G
Largest 20 Tenants – FSP Owned Portfolio
(Unaudited & Estimated)
The following table includes the largest 20 tenants in FSP’s owned portfolio based on square feet leased.
| % of | |||||
| Tenant | Sq Ft | SIC Code | Portfolio | ||
| 1 | Capital One Services, Inc. | (1) | 297,789 | 61 | 5.5% |
| 2 | Citgo Petroleum Corporation | 248,399 | 29 | 4.6% | |
| 3 | Tektronix Texas, LLC | 241,372 | 38 | 4.4% | |
| 4 | Burger King Corporation | 212,619 | 58 | 3.9% | |
| 5 | New Era of Networks, Inc. (Sybase) | 199,077 | 42 | 3.7% | |
| 6 | Citigroup Credit Services, Inc. | (2) | 176,848 | 61 | 3.3% |
| 7 | RGA Reinsurance Company | 171,120 | 63 | 3.2% | |
| 8 | International Business Machines Corp. | 138,033 | 73 | 2.5% | |
| 9 | Giesecke & Devrient America | 135,888 | 73 | 2.5% | |
| 10 | Murphy Exploration & Production Company | 133,786 | 13 | 2.5% | |
| 11 | CACI Technologies, Inc. | 132,896 | 73 | 2.4% | |
| 12 | Monsanto | 127,778 | 28 | 2.4% | |
| 13 | Maines Paper and Food Service, Inc. | 98,745 | 42 | 1.8% | |
| 14 | Jones Lang Lasalle | 92,827 | 87 | 1.7% | |
| 15 | AMDOCS, Inc. | 91,928 | 73 | 1.7% | |
| 16 | Ober Kaler Grimes | 90,811 | 81 | 1.7% | |
| 17 | County of Santa Clara | 90,467 | 91 | 1.7% | |
| 18 | Technip-Coflexip USA Holdings, Inc | 86,059 | 73 | 1.6% | |
| 19 | Vail Corp, dba Vail Resorts | 83,620 | 79 | 1.5% | |
| 20 | Corporate Holdings, LLC | 81,818 | 67 | 1.5% | |
| Total | 2,931,880 | 54.1% |
| (1) | Capital One sublets all of the space to LandAmerica Financial Group, Inc. LandAmerica Financial Group, Inc. entered into a direct lease with us which commences at the expiration of the Capital One lease on October 31, 2009. On November 26, 2008, LandAmerica Financial Group, Inc. filed a voluntary motion for relief under chapter 11 of the Bankruptcy Code. As of April 24, 2009, no motion to assume or reject the direct lease had been filed by LandAmerica Financial Group, Inc., although we expect such a motion on or before June 24, 2009. |
| (2) | The lease with Citicorp Credit Services, Inc. is guaranteed by Citigroup. |
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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.