Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 04, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Entity File Number | 001-32470 | ||
Entity Registrant Name | FRANKLIN STREET PROPERTIES CORP. | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 04-3578653 | ||
Entity Address, Address Line One | 401 Edgewater Place, Suite 200 | ||
Entity Address, City or Town | Wakefield | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 01880 | ||
City Area Code | 781 | ||
Local Phone Number | 557-1300 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 537,721,714 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | FSP | ||
Security Exchange Name | NYSEAMER | ||
Entity Common Stock, Shares Outstanding | 103,998,520 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001031316 | ||
Amendment Flag | false | ||
Auditor Name | Ernst & Young LLP | ||
Auditor Firm ID | 42 | ||
Auditor Location | Boston, Massachusetts |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Real estate assets: | ||
Land | $ 146,844 | $ 189,155 |
Buildings and improvements | 1,457,209 | 1,938,629 |
Fixtures and equipment | 11,404 | 12,949 |
Total real estate assets, gross | 1,615,457 | 2,140,733 |
Less accumulated depreciation | 424,487 | 538,717 |
Real estate assets, net | 1,190,970 | 1,602,016 |
Acquired real estate leases, less accumulated amortization of $40,423 and $55,447, respectively | 14,934 | 28,206 |
Cash, cash equivalents and restricted cash | 40,751 | 4,150 |
Tenant rent receivables | 1,954 | 7,656 |
Straight-line rent receivable | 49,024 | 67,789 |
Prepaid expenses and other assets | 4,031 | 5,752 |
Related party mortgage loan receivable | 24,000 | 21,000 |
Office computers and furniture, net of accumulated depreciation of $1,198 and $1,443, respectively | 198 | 163 |
Deferred leasing commissions, net of accumulated amortization of $21,099 and $30,411, respectively | 38,311 | 56,452 |
Total assets | 1,364,173 | 1,793,184 |
Liabilities: | ||
Bank note payable | 3,500 | |
Term loans payable, less unamortized financing costs of $714 and $2,677, respectively | 274,286 | 717,323 |
Series A & Series B Senior Notes, less unamortized financing costs of $658 and $822, respectively | 199,342 | 199,178 |
Accounts payable and accrued expenses | 89,493 | 72,058 |
Accrued compensation | 4,704 | 3,918 |
Tenant security deposits | 6,219 | 8,677 |
Lease liability | 1,159 | 1,536 |
Other liabilities: derivative liabilities | 5,239 | 17,311 |
Acquired unfavorable real estate leases, less accumulated amortization of $2,285 and $4,031, respectively | 528 | 1,592 |
Total liabilities | 580,970 | 1,025,093 |
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, 103,998,520 and 107,328,199 shares issued and outstanding, respectively | 10 | 11 |
Additional paid-in capital | 1,339,226 | 1,357,131 |
Accumulated other comprehensive income (loss) | (5,239) | (17,311) |
Distributions in excess of accumulated earnings | (550,794) | (571,740) |
Total stockholders' equity | 783,203 | 768,091 |
Total liabilities and stockholders' equity | $ 1,364,173 | $ 1,793,184 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Consolidated Balance Sheets | ||
Acquired real estate leases, accumulated amortization | $ 40,423 | $ 55,447 |
Office computers and furniture, accumulated depreciation | 1,198 | 1,443 |
Deferred leasing commissions, accumulated amortization | 21,099 | 30,411 |
Term loan payable, unamortized financing costs | 714 | 2,677 |
Series A & Series B Senior notes, unamortized financing costs | 658 | 822 |
Acquired unfavorable real estate leases, accumulated amortization | $ 2,285 | $ 4,031 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 180,000,000 | 180,000,000 |
Common stock, shares issued (in shares) | 103,998,520 | 107,328,199 |
Common stock, shares outstanding (in shares) | 103,998,520 | 107,328,199 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Rental | $ 207,581 | $ 244,207 | $ 265,527 |
Total revenues | 209,358 | 245,848 | 269,065 |
Expenses: | |||
Real estate operating expenses | 60,881 | 66,940 | 72,311 |
Real estate taxes and insurance | 41,061 | 48,390 | 47,871 |
Depreciation and amortization | 78,544 | 88,558 | 90,909 |
General and administrative | 15,898 | 14,997 | 14,473 |
Interest | 32,273 | 36,026 | 36,757 |
Total expenses | 228,657 | 254,911 | 262,321 |
Loss on extinguishment of debt | (901) | ||
Gain on sale of properties, net | 113,134 | 41,928 | |
Income before taxes and equity in income of non-consolidated REITs | 92,934 | 32,865 | 6,744 |
Tax expense | 638 | 250 | 269 |
Equity in income of non-consolidated REITs | 421 | ||
Net Income | $ 92,717 | $ 32,615 | $ 6,475 |
Weighted average number of shares outstanding, basic | 106,667 | 107,303 | 107,233 |
Weighted average number of shares outstanding, diluted | 106,667 | 107,303 | 107,233 |
Net income per share, basic | $ 0.87 | $ 0.30 | $ 0.06 |
Net income per share, diluted | $ 0.87 | $ 0.30 | $ 0.06 |
Rental | |||
Revenues: | |||
Rental | $ 207,581 | $ 244,207 | $ 265,527 |
Related party revenue: Management fees and interest income from loans | |||
Revenues: | |||
Revenue | 1,700 | 1,610 | 3,517 |
Related party revenue: Other | |||
Revenues: | |||
Revenue | $ 77 | $ 31 | $ 21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Consolidated Statements of Comprehensive Income (Loss) | |||
Net income | $ 92,717 | $ 32,615 | $ 6,475 |
Other comprehensive income (loss): | |||
Unrealized gain (loss) on derivative financial instruments | 12,072 | (12,629) | (19,447) |
Total other comprehensive income (loss) | 12,072 | (12,629) | (19,447) |
Comprehensive income (loss) | $ 104,789 | $ 19,986 | $ (12,972) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated other comprehensive income (loss) | Distributions in excess of accumulated earnings | Total |
Balance at Dec. 31, 2018 | $ 11 | $ 1,356,457 | $ 14,765 | $ (533,599) | $ 837,634 |
Balance (in shares) at Dec. 31, 2018 | 107,231,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | (19,447) | 6,475 | (12,972) | ||
Equity-based compensation | 337 | 337 | |||
Equity-based compensation (in shares) | 38,000 | ||||
Distributions | (38,603) | (38,603) | |||
Balance at Dec. 31, 2019 | $ 11 | 1,356,794 | (4,682) | (565,727) | 786,396 |
Balance (in shares) at Dec. 31, 2019 | 107,269,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | (12,629) | 32,615 | 19,986 | ||
Equity-based compensation | 337 | 337 | |||
Equity-based compensation (in shares) | 59,000 | ||||
Distributions | (38,628) | (38,628) | |||
Balance at Dec. 31, 2020 | $ 11 | 1,357,131 | (17,311) | (571,740) | 768,091 |
Balance (in shares) at Dec. 31, 2020 | 107,328,000 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Comprehensive income (loss) | 12,072 | 92,717 | 104,789 | ||
Repurchased shares | $ (1) | (18,243) | $ (18,244) | ||
Repurchased shares (in shares) | (3,396,000) | (3,396,243) | |||
Equity-based compensation | 338 | $ 338 | |||
Equity-based compensation (in shares) | 67,000 | ||||
Distributions | (71,771) | (71,771) | |||
Balance at Dec. 31, 2021 | $ 10 | $ 1,339,226 | $ (5,239) | $ (550,794) | $ 783,203 |
Balance (in shares) at Dec. 31, 2021 | 103,999,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 92,717 | $ 32,615 | $ 6,475 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 81,041 | 91,581 | 93,787 |
Amortization of above and below market leases | (34) | (313) | (402) |
Shares issued as compensation | 338 | 337 | 337 |
Loss on extinguishment of debt | 901 | ||
Gain on sale of properties, net | (113,134) | (41,928) | |
Equity in income of non-consolidated REITs | (421) | ||
Distributions from non-consolidated REITs | 421 | ||
Decrease in allowance for doubtful accounts and write-off of accounts receivable | (13) | (71) | |
Changes in operating assets and liabilities: | |||
Tenant rent receivables | 5,702 | (3,792) | 158 |
Straight-line rents | (3,930) | (1,685) | (8,876) |
Lease acquisition costs | (2,353) | (2,123) | (3,999) |
Prepaid expenses and other assets | 82 | (129) | 2,313 |
Accounts payable and accrued expenses | (11,096) | 7,785 | 3,910 |
Accrued compensation | 786 | 518 | 357 |
Tenant security deposits | (2,458) | (669) | 3,027 |
Payment of deferred leasing commissions | (12,200) | (13,735) | (15,101) |
Net cash provided by operating activities | 36,362 | 68,449 | 81,915 |
Cash flows from investing activities: | |||
Property improvements, fixtures and equipment | (64,833) | (77,919) | (70,746) |
Investment in related party mortgage loan receivable | (3,000) | (2,400) | |
Repayment of related party mortgage loan receivable | 52,060 | ||
Proceeds received on sales of real estate assets | 573,307 | 88,958 | |
Proceeds received from liquidating trust | 1,470 | ||
Net cash provided by (used in) investing activities | 505,474 | 11,039 | (19,616) |
Cash flows from financing activities: | |||
Distributions to stockholders | (38,491) | (38,628) | (38,603) |
Stock repurchases | (18,244) | ||
Borrowings under bank note payable | 91,500 | 105,000 | 45,000 |
Repayments of bank note payable | (95,000) | (101,500) | (70,000) |
Repayment on term loan payable | (445,000) | (50,000) | |
Deferred financing costs | (83) | ||
Net cash used in financing activities | (505,235) | (85,128) | (63,686) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 36,601 | (5,640) | (1,387) |
Cash, cash equivalents and restricted cash, beginning of year | 4,150 | 9,790 | 11,177 |
Cash, cash equivalents and restricted cash, end of period | 40,751 | 4,150 | 9,790 |
Cash paid for: | |||
Interest | 30,141 | 33,060 | 34,470 |
Taxes | 454 | 477 | 508 |
Non-cash investing and financing activities: | |||
Accrued dividend | 33,280 | ||
Accrued costs for purchases of real estate assets | $ 4,715 | $ 8,625 | $ 11,012 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2021 | |
Organization | |
Organization | 1. Organization Franklin Street Properties Corp. (“FSP Corp.” or the “Company”), holds, directly and indirectly, 100% of the interest in FSP Investments LLC, FSP Property Management LLC, FSP Holdings LLC and FSP Protective TRS Corp. FSP Property Management LLC provides asset management and property management services. The Company also has a non-controlling common stock interest in two corporations organized to operate as real estate investment trusts (“REIT”). Collectively, the two REITs are referred to as the “Sponsored REITs”. As of December 31, 2021, the Company owned and operated a portfolio of real estate consisting of 24 operating properties, two managed Sponsored REITs and held one promissory note secured by a mortgage on real estate owned by a Sponsored REIT. From time-to-time, the Company may acquire real estate or make additional secured loans. The Company may also pursue, on a selective basis, the sale of its properties in order to take advantage of the value creation and demand for its properties, or for geographic or property specific reasons. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Estimates and Assumptions The Company prepares its financial statements and related notes in conformity with generally accepted accounting principles in the United States of America (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for doubtful accounts, allowance for credit losses, purchase price allocations, impairment considerations, useful lives of fixed assets and the valuation of derivatives. Investments in non-consolidated REITs As of December 31, 2021, the Company has a non-controlling common stock interest in two Sponsored REITs in which the Company no longer shares in economic benefit or risk. The Company had a non-controlling common stock interest in another Sponsored REIT and a non-controlling preferred stock interest in additional Sponsored REITs, each of which were liquidated during 2019 or 2018. The Company exercised influence over, but did not control these entities and investments were accounted for using the equity method. Under the equity method of accounting, the Company's cost basis was adjusted by its share of the Sponsored REITs' earnings or losses. The equity investments in Sponsored REITS were reviewed for impairment each reporting period. The Company recorded impairment charges when events or circumstances indicated a decline in the fair value below the carrying value of the investment had occurred and such decline was other-than-temporary. Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct a proposed sale of the property or merger of the company. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to amend the corporate charter. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion upon a reconsideration event. As of December 31, 2021, our relationship with FSP Monument Circle LLC was considered a VIE for which we are not the primary beneficiary. Our maximum exposure to losses associated with this VIE is limited to the outstanding Sponsored REIT Loan, the related accrued interest receivable and an exit fee receivable, which were in aggregate approximately $24.5 million at December 31, 2021. The accrued interest and exit fee receivables are included in prepaid expenses and other assets in the consolidated balance sheet and are approximately $0.5 million at December 31, 2021. The relationships and investments related to the entity in which we have a variable interest with are summarized in Note 3, Related Party Transactions and Investments in Non-Consolidated Entities. Real Estate and Depreciation Real estate assets are stated at cost less accumulated depreciation. The Company allocates the value of real estate acquired among land, buildings and identified intangible assets or liabilities. Costs related to land, building and improvements are capitalized. Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations. Costs incurred in connection with leasing (primarily tenant improvements and leasing commissions) are capitalized and amortized over the lease period. Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred. Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows: Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 The Company reviews its properties to determine if their carrying amounts will be recovered from future operating cash flows if certain indicators of impairment are identified at those properties. These indicators may include declining tenant occupancy, weak or declining tenant profitability, cash flows or liquidity, the Company’s decision to dispose of an asset before the end of its estimated useful life or legislative, economic, or market changes that permanently reduce the value of the Company’s investment. If indicators of impairment are present, the Company evaluates the carrying value of the property by comparing it to its expected future undiscounted cash flow. If the Company determines that impairment has occurred, the affected assets are reduced to their fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows are considered on an undiscounted basis in the analysis that the Company conducts to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized. The Company did not recognize any impairment losses for the years ended December 31, 2021, 2020 or 2019. Acquired Real Estate Leases and Amortization Acquired real estate leases represent costs associated with acquiring an in-place lease (i.e., the market cost to execute a similar lease, including leasing commission, tenant improvements, legal, vacancy and other related costs) and the value relating to leases with rents above the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 12 months to 154 months . Amortization of these combined components was approximately $8.2 million, $12.5 million and $18.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization related to costs associated with acquiring an in-place lease is included in depreciation and amortization on the consolidated statements of income. Amortization related to leases with rents above the market rate is offset against the rental revenue in the consolidated statements of income. The estimated annual amortization expense for the five years and thereafter following December 31, 2021 is as follows: (in thousands) December 31, 2022 $ 3,882 2023 3,211 2024 2,870 2025 2,196 2026 1,789 2027 and thereafter 986 Acquired Unfavorable Real Estate Leases and Amortization Acquired unfavorable real estate leases represent the value relating to leases with rents below the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 64 months to 151 months . Amortization expense was approximately $0.5 million, $0.9 million and $1.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization related to leases with rents below the market rate is included with rental revenue in the consolidated statements of income. The estimated annual amortization for the five years and thereafter following December 31, 2021 is as follows: (in thousands) December 31, 2022 $ 161 2023 104 2024 93 2025 60 2026 31 2027 and thereafter 79 Asset Held For Sale Classification of a property as held for sale typically occurs upon the execution of a purchase and sale agreement and belief by management that the sale or disposition is probable of occurrence within one year . Upon determining that a property was held for sale, the Company discontinues depreciating the property and reflects the property in its consolidated balance sheet at the lower of its carrying amount or fair value less the cost to sell. The Company presents the property held for sale on its consolidated balance sheet as “Asset held for sale”. The Company reports the results of operations of its properties sold or held for sale in its consolidated statements of income through the date of sale. Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, December 31, (in thousands) 2021 2020 Cash and cash equivalents $ 34,308 $ 2,650 Restricted cash 6,443 1,500 Total cash, cash equivalents and restricted cash $ 40,751 $ 4,150 Restricted Cash Restricted cash consists of tenant security deposits, which are required by law in some states or by contractual agreement to be kept in a segregated account, and escrows arising from property sales. Tenant security deposits are refunded when tenants vacate, provided that the tenant has not damaged the property. Cash held in escrow is paid when the related issue is resolved. Restricted cash also may include funds segregated for specific tenant improvements per lease agreements. Tenant Rent Receivables Tenant rent receivables are expected to be collected within one year . The Company provided an allowance for doubtful accounts based on collectability. The Company recognizes the effect of a change in its assessment of whether the collectability of operating lease receivables are probable as an adjustment to lease income rather than bad debt expense. Related Party Mortgage Loan Receivable Management monitors and evaluates the secured loans compared to the expected performance, cash flow and value of the underlying real estate and has not experienced a loss on these loans to date. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, derivatives, related party mortgage loan receivable and accounts receivable. The Company maintains its cash balances principally in banks which the Company believes to be creditworthy. The Company periodically assesses the financial condition of the banks and believes that the risk of loss is minimal. Cash balances held with various financial institutions frequently exceed the insurance limit of provided by the Federal Deposit Insurance Corporation. The derivatives that the Company has are from interest rate swap agreements that are discussed in Note 5. The related party mortgage loan receivable is held with Sponsored REIT. The Company performs regular evaluations on the extent and impact of any credit deterioration that could affect the performance and value of the secured property, as well as the financial and operating capability of the borrower. The Company performs ongoing credit evaluations of its tenants and requires certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. The Company has no single tenant which accounts for more than Financial Instruments The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates. Straight-line Rent Receivable Certain leases provide for fixed rent increases over the term of the lease. Rental revenue is recognized on a straight-line basis over the related lease term; however, billings by the Company are based on the lease agreements. Straight-line rent receivable, which is the cumulative revenue recognized in excess of amounts billed by the Company, was 31, 2021, 2020 and 2019, respectively. Prior to 2020, the Company provided an allowance for doubtful accounts based on collectability. The Company recognized the effect of a change in its assessment of whether the collectability of operating lease receivables are probable as an adjustment to lease income rather than bad debt expense. The reserve was eliminated during 2020 and no changes occurred during 2019 based on such assessment. Deferred Leasing Commissions Deferred leasing commissions represent direct and incremental external leasing costs incurred in the leasing of commercial space. These costs are capitalized and are amortized on a straight-line basis over the terms of the related lease agreements. Amortization expense was approximately The estimated annual amortization for the five years and thereafter following December 31, 2021 is as follows: (in thousands) December 31, 2022 $ 6,504 2023 6,081 2024 5,299 2025 4,377 2026 3,586 2027 and thereafter 12,464 Common Share Repurchases The Company recognizes the gross cost of the common shares it repurchases as a reduction in stockholders’ equity using the treasury stock method. Maryland law does not recognize a separate treasury stock account but provides that shares repurchased are classified as authorized but unissued shares. Accordingly, the Company reduces common stock for the par value and the excess of the purchase price over the par value is a reduction to additional paid-in capital. Revenue Recognition Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2021 2020 2019 Income from leases $ 148,705 $ 180,899 $ 191,828 Reimbursable expenses 54,825 61,310 64,421 Straight-line rent adjustment 4,017 1,685 8,876 Amortization of favorable and unfavorable leases 34 313 402 $ 207,581 $ 244,207 $ 265,527 Related Party and Other Revenue - Segment Reporting The Company is a REIT focused on real estate investments primarily in the office market and currently operates in only one segment: real estate operations. Income Taxes Taxes on income for the years ended December 31, 2021, 2020 and 2019 represent taxes incurred by FSP Protective TRS Corp, which is a taxable REIT subsidiary, and the State of Texas franchise tax applicable to FSP Corp., which is classified as an income tax for reporting purposes. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were Derivative Instruments The Company recognizes derivatives on the consolidated balance sheets at fair value. Derivatives that do not qualify, or are not designated as hedge relationships, must be adjusted to fair value through income. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the consolidated balance sheets as either an asset or liability. To the extent hedges are effective, a corresponding amount, adjusted for swap payments, is recorded in accumulated other comprehensive income within stockholders’ equity. Amounts are then reclassified from accumulated other comprehensive income to the income statement in the period or periods the hedged forecasted transaction affects earnings. Ineffectiveness, if any, is recognized in other comprehensive income (“OCI”) and reclassified into the income statement. The Company reviews the effectiveness of each hedging transaction, which involves estimating future cash flows, at least quarterly. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company currently has Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is also an established fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability including credit risk, which was not significant to the overall value. These inputs (See Notes 3 and 5) were considered and applied to the Company’s derivative instruments and Sponsored REIT Loan. Level 2 inputs were used to value the interest rate swaps and Level 3 inputs were used to value the Sponsored REIT Loan. Subsequent Events In preparing these consolidated financial statements the Company evaluated events that occurred through the date of issuance of these financial statements for potential recognition or disclosure. Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company is currently assessing the potential impact that the adoption of ASU 2020-04 may have on its consolidated financial statements. |
Related Party Transactions and
Related Party Transactions and Investments in Non-Consolidated Entities | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions and Investments in Non-Consolidated Entities | |
Related Party Transactions and Investments in Non-Consolidated Entities | 3. Related Party Transactions and Investments in Non-Consolidated Entities Investment in Sponsored REITs The Company held a common stock interest in 2 Sponsored REITs at December 31, 2021, 2020 and 2019. The Company held a non-controlling preferred stock investment in Sponsored REITs, FSP 303 East Wacker Drive Corp. (“East Wacker”) and FSP Grand Boulevard Corp. (“Grand Boulevard”), each of which were liquidated during the three months ended September 30, 2018. Equity in income (loss) of investments in non-consolidated REITs were derived from the Company’s share of income or loss in the operations of those entities and includes gain or loss on liquidation. The Company exercised influence over, but did not control these entities, and investments were accounted for using the equity method. During the year ended December 31, 2019, a property owned by a Sponsored REIT, FSP Energy Tower I Corp. (“Energy Tower”), was sold and, thereafter, liquidating distributions for its preferred shareholders were declared and issued. The Company held a mortgage loan and secured revolving line of credit with this entity, which were secured by the property owned by Energy Tower. The loans with Energy Tower in the aggregate principal amount of million were repaid by the proceeds of the sale. Equity in income of investment in non-consolidated REITs: The following table includes equity in income of investments in non-consolidated REITs: Year Ended December 31, (in thousands) 2021 Equity in income of East Wacker $ 421 Total $ 421 Equity in income of East Wacker was derived from the Company’s preferred stock investment in the entity. In December 2007, the Company purchased of the outstanding preferred shares, of East Wacker. On September 24, 2018, the property owned by East Wacker was sold at a gain. On October 6, 2021, the Company received a liquidating distribution of million, which is included in equity in income of non-consolidated REITs on the consolidated statements of income. The following table includes distributions received from non-consolidated REITs: Year Ended December 31, (in thousands) 2021 Distributions from East Wacker $ 421 $ 421 Non-consolidated REITs As of December 31, 2021, the Company has a non-controlling common stock interest in two Sponsored REITs in which the Company no longer shares in economic benefit or risk. Management fees and interest income from loans: Asset management fees range from 1% to 5% of collected rents, and the applicable contracts are cancelable with 30 day notice. Asset management fee income from non-consolidated entities amounted to approximately $0.1 million, $0.1 million and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. From time to time the Company may make secured loans (“Sponsored REIT Loans”) to Sponsored REITs in the form of mortgage loans or revolving lines of credit to fund construction costs, capital expenditures, leasing costs and for other purposes. The Company reviews the need for an allowance under CECL for Sponsored REIT loans at each reporting period. The measurement of expected credit losses is based upon historical experiences, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The Company has elected to apply the practical expedient for financial assets secured by collateral in instances where the borrower is experiencing financial difficulty and repayment of the Sponsored REIT Loan is expected to be provided substantially through operation or sale of the collateral. The Company uses the fair value of the collateral at the reporting date and an adjustment to the allowance for expected credit losses is recorded when the amortized cost basis of the financial asset exceeds the fair value of the collateral, less costs to sell. The Company regularly evaluates the extent and impact of any credit deterioration that could affect performance and the value of the secured property, as well as the financial and operating capability of the borrower. A property’s operating results and existing cash balances are considered and used to assess whether cash flows from operations are sufficient to cover the current and future operating and debt service requirements. The Company also evaluates the borrower’s competency in managing and operating the secured property and considers the overall economic environment, real estate sector and geographic sub-market in which the secured property is located. The Company applies normal loan review and underwriting procedures (as may be implemented or modified from time to time) in making that judgment. The Company anticipates that each Sponsored REIT Loan will be repaid at maturity or earlier from refinancing, long term financings of the underlying properties, cash flows from the underlying properties or some other capital event. Each Sponsored REIT Loan is secured by a mortgage on the underlying property and has a term of approximately one to three years . The following is a summary of the Sponsored REIT Loan outstanding as of December 31, 2021: Maximum Amount Interest (dollars in thousands, except footnotes) Maturity Amount Outstanding Rate at Sponsored REIT Location Date of Loan 31-Dec-21 31-Dec-21 Mortgage loan secured by property FSP Monument Circle LLC (1) Indianapolis, IN 30-Jun-23 $ 24,000 $ 24,000 7.51 % $ 24,000 $ 24,000 (1) This mortgage loan includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower. The Company recognized interest income and fees from the Sponsored REIT Loans of approximately $1.6 million, $1.5 million and $3.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. The financial instrument was classified within Level 3 of the fair value hierarchy and had a fair value of approximately million as of December 31, 2021. On October 29, 2021, the Company agreed to amend and restate its existing Sponsored REIT Loan to FSP Monument Circle LLC to extend the maturity date from December 6, 2022 to June 30, 2023 and to advance an additional $3.0 million tranche of indebtedness to FSP Monument Circle LLC with the same June 30, 2023 maturity date, effectively increasing the aggregate principal amount of the Sponsored REIT Loan from $21 million to $24 million. In addition, the Company agreed to defer all principal and interest payments due under the Sponsored REIT Loan until the maturity date on June 30, 2023. As part of its consideration for agreeing to amend and restate the Sponsored REIT Loan, the Company obtained from the stockholders of the parent of FSP Monument Circle LLC the right to vote their shares in favor of any sale of the property owned by FSP Monument Circle LLC any time on or after January 1, 2023. The amended and restated Sponsored REIT Loan qualified as a troubled debt restructuring. There were On December 6, 2020, the Company entered into a second amendment to the Sponsored REIT Loan which qualified as a troubled debt restructuring. The amendment extended the maturity date of the loan for two years and increased the interest rate from 7.19% to 7.51% . |
Bank Note Payable, Term Note Pa
Bank Note Payable, Term Note Payable and Private Placements | 12 Months Ended |
Dec. 31, 2021 | |
Bank Note Payable, Term Note Payable and Private Placements | |
Bank Note Payable, Term Note Payable and Senior Notes | 4. Bank Note Payable, Term Note Payable and Private Placements JPM Term Loan On August 2, 2018, the Company entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent and lender (“JPMorgan”), and the other lending institutions party thereto (the “JPM Credit Agreement”), which provides a single unsecured bridge loan in the aggregate principal amount of $150 million (the “JPM Term Loan”). On December 24, 2020 the Company repaid a million remained fully advanced and outstanding under the JPM Term Loan. On June 4, 2021, the Company repaid the remaining million related to unamortized deferred financing costs. Although the interest rate on the JPM Term Loan was variable under the JPM Credit Agreement, the Company fixed the LIBOR-based rate on a portion of the JPM Term Loan by entering into interest rate swap transactions. On March 7, 2019, the Company entered into ISDA Master Agreements with various financial institutions to hedge a $100 million portion of the future LIBOR-based rate risk under the JPM Credit Agreement. Effective March 29, 2019, the Company fixed the LIBOR-based rate at million portion of the JPM Term Loan until November 30, 2021. On June 4, 2021, the Company paid approximately million to terminate the interest rate swap, which was scheduled to mature on November 30, 2021. BMO Term Loan On September 27, 2018, the Company entered into a Second Amended and Restated Credit Agreement with the lending institutions party thereto and Bank of Montreal (“BMO”), as administrative agent (the “BMO Credit Agreement”). The BMO Credit Agreement provides for a single, unsecured term loan borrowing in the initial amount of $220 million (the “BMO Term Loan”), of which $165 million remains fully advanced and outstanding. The BMO Term Loan initially consisted of a $55 million tranche A term loan and a $165 million tranche B term loan. On June 4, 2021, the Company repaid the tranche A term loan that was scheduled to mature on November 30, 2021, and incurred a loss on extinguishment of debt of million related to unamortized deferred financing costs. The million tranche B term loan matures on January 31, 2024. The BMO Credit Agreement also includes an accordion feature that allows up to million of additional loans, subject to receipt of lender commitments and satisfaction of certain customary conditions. The BMO Term Loan was previously evidenced by an Amended and Restated Credit Agreement, dated October 29, 2014, among the Company, BMO, as administrative agent and lender, and the other lending institutions party thereto, as amended by a First Amendment, dated July 21, 2016, and a Second Amendment, dated October 18, 2017. The BMO Term Loan bears interest at either (i) a number of basis points over LIBOR depending on the Company’s credit rating (165 basis points over LIBOR at December 31, 2021) or (ii) a number of basis points over the base rate depending on the Company’s credit rating (65 basis points over the base rate at December 31, 2021). The margin over LIBOR rate or base rate is determined based on the Company’s credit rating pursuant to the following grid: Credit LIBOR Rate Base Rate Level Rating Margin Margin I A- / A3 (or higher) 85.0 bps — bps II BBB+ / Baa1 90.0 bps — bps III BBB / Baa2 100.0 bps — bps IV BBB- / Baa3 125.0 bps 25.0 bps V <BBB- / Baa3 165.0 bps 65.0 bps For purposes of the BMO Term Loan, base rate means, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2021, the Company’s credit rating from Moody’s Investors Service was Ba1. Although the interest rate on the BMO Term Loan is variable under the BMO Credit Agreement, the Company fixed the base LIBOR interest rate by entering into interest rate swap transactions. On August 26, 2013, the Company entered into an ISDA Master Agreement with Bank of Montreal that fixed the base LIBOR interest rate on the BMO Term Loan at 2.32% per annum, which matured on August 26, 2020. On February 20, 2019, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the BMO Term Loan at per annum for the period beginning on August 26, 2020 and ending January 31, 2024. Accordingly, based upon the Company’s credit rating, as of December 31, 2021, the effective interest rate on the BMO Term Loan was per annum. On June 4, 2021, the Company paid approximately million to terminate the portion of the interest rate swap on the tranche A term loan, which was scheduled to mature on November 30, 2021. The BMO Credit Agreement contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BMO Credit Agreement also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The BMO Credit Agreement provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the BMO Credit Agreement). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the BMO Credit Agreement immediately due and payable, terminate the lenders’ commitments to make loans under the BMO Credit Agreement, and enforce any and all rights of the lenders or administrative agent under the BMO Credit Agreement and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, the commitments of lenders will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable. The Company was in compliance with the BMO Term Loan financial covenants as of December 31, 2021. BofA Credit Facility On July 21, 2016, the Company entered into a First Amendment (the “BofA First Amendment”), and on October 18, 2017, the Company entered into a Second Amendment (the “BofA Second Amendment”), to the Second Amended and Restated Credit Agreement dated October 29, 2014 among the Company, the lending institutions party thereto and BofA, as administrative agent, L/C Issuer and Swing Line Lender (as amended by the BofA First Amendment and the BofA Second Amendment, the “BofA Credit Facility”) that continued an existing unsecured revolving line of credit (the “Former BofA Revolver”) and an existing term loan (the “BofA Term Loan”). Effective simultaneously with the closing of the BofA Revolver (as defined in Note 11 to these Consolidated Financial Statements) on January 10, 2022, the Company delivered a notice to BofA terminating the aggregate lender commitments under the Former BofA Revolver in their entirety. Former BofA Revolver Highlights ● As of December 31, 2021, there were no borrowings under the Former BofA Revolver. ● The Former BofA Revolver was for borrowings, at the Company's election, of up to $600 million. Borrowings made pursuant to the Former BofA Revolver could be revolving loans, swing line loans or letters of credit, the combined sum of which could not exceed $600 million outstanding at any time. As of December 31, 2021, there were no borrowings outstanding under the Former BofA Revolver. The Former BofA Revolver bore interest at either (i) a margin over LIBOR depending on the Company’s credit rating ( Base LIBOR Rate Facility Rate Level Credit Rating Margin Fee Margin I A- / A3 (or higher) 0.825 % 0.125 % 0.000 % II BBB+ / Baa1 0.875 % 0.150 % 0.000 % III BBB / Baa2 1.000 % 0.200 % 0.000 % IV BBB- / Baa3 1.200 % 0.250 % 0.200 % V <BBB- / Baa3 1.550 % 0.300 % 0.550 % For purposes of the BofA Credit Facility, base rate means, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2021, the Company’s credit rating from Moody’s Investors Service was Ba1. Based upon the Company’s credit rating, as of December 31, 2021, the interest rate on the Former BofA Revolver would have been 1.65% per annum. The weighted average interest rate on all amounts outstanding on the Former BofA Revolver during the year ended December 31, 2021, was approximately per annum. As of December 31, 2020, there were borrowings of million outstanding under the Former BofA Revolver. The weighted average interest rate on all amounts outstanding on the Former BofA Revolver during the year ended December 31, 2020, was approximately per annum. BofA Term Loan Highlights ● The original principal amount of the BofA Term Loan was $400 million. On September 30, 2021, the Company repaid a $90 million portion and on October 25, 2021, the Company repaid a $200 million portion of the BofA Term Loan and incurred a loss on extinguishment of debt of $0.7 million related to unamortized deferred financing costs. As of December 31, 2021, $110 million remained outstanding under the BofA Term Loan. ● The BofA Term Loan matures on January 12, 2023. ● The BofA Credit Facility includes an accordion feature that allows for an aggregate amount of up to $500 million of additional borrowing capacity to the Former BofA Revolver and/or the BofA Term Loan, subject to receipt of lender commitments and satisfaction of certain customary condition s. The BofA Term Loan bears interest at either (i) a margin over LIBOR depending on the Company’s credit rating (1.75% over LIBOR at December 31, 2021) or (ii) a margin over the base rate depending on the Company’s credit rating (0.750% over the base rate at December 31, 2021). The margin over LIBOR rate or base rate is determined based on the Company’s credit rating pursuant to the following grid: LIBOR Rate Base Rate Level Credit Rating Margin Margin I A- / A3 (or higher) 0.900 % 0.000 % II BBB+ / Baa1 0.950 % 0.000 % III BBB / Baa2 1.100 % 0.100 % IV BBB- / Baa3 1.350 % 0.350 % V <BBB- / Baa3 1.750 % 0.750 % For purposes of the BofA Credit Facility, base rate means, for any day, a fluctuating rate per annum equal to the highest of: (i) the bank’s prime rate for such day, (ii) the Federal Funds Rate for such day, plus 0.50%, and (iii) the one month LIBOR based rate for such day plus 1.00%. As of December 31, 2021, the Company’s credit rating from Moody’s Investors Service was Ba1. The interest rate on the BofA Term Loan was variable at December 31, 2021. Previously the Company had fixed the base LIBOR interest rate on the BofA Term Loan by entering into interest rate swap transactions. On July 22, 2016, the Company entered into ISDA Master Agreements with a group of banks that fixed the base LIBOR interest rate on the BofA Term Loan at per annum for the period beginning on September 27, 2017 and ended on September 27, 2021. Based upon the Company’s credit rating, as of December 31, 2021, the interest rate on the BofA Term Loan was per annum. The weighted average variable interest rate on all amounts outstanding under the BofA Term Loan after the expiration of the interest rate swaps, on September 27, 2021, during the period from September 28 through December 31, 2021, was approximately per annum. BofA Credit Facility General Information The BofA Credit Facility contains customary affirmative and negative covenants for credit facilities of this type, including limitations with respect to indebtedness, liens, investments, mergers and acquisitions, disposition of assets, changes in business, certain restricted payments, the requirement to have subsidiaries provide a guaranty in the event that they incur recourse indebtedness and transactions with affiliates. The BofA Credit Facility also contains financial covenants that require the Company to maintain a minimum tangible net worth, a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, a maximum unencumbered leverage ratio, and minimum unsecured interest coverage. The BofA Credit Facility provides for customary events of default with corresponding grace periods, including failure to pay any principal or interest when due, certain cross defaults and a change in control of the Company (as defined in the BofA Credit Facility). In the event of a default by the Company, the administrative agent may, and at the request of the requisite number of lenders shall, declare all obligations under the BofA Credit Facility immediately due and payable, terminate the lenders’ commitments to make loans under the BofA Credit Facility, and enforce any and all rights of the lenders or administrative agent under the BofA Credit Facility and related documents. For certain events of default related to bankruptcy, insolvency, and receivership, the commitments of lenders will be automatically terminated and all outstanding obligations of the Company will become immediately due and payable. We were in compliance with the BofA Credit Facility financial covenants as of December 31, 2021. The Company may use the proceeds of the loans under the BofA Credit Facility to finance the acquisition of real properties and for other permitted investments; to finance investments associated with Sponsored REITs, to refinance or retire indebtedness and for working capital and other general business purposes, in each case to the extent permitted under the BofA Credit Facility. Senior Notes On October 24, 2017, the Company entered into a note purchase agreement (the “Note Purchase Agreement”) with the various purchasers named therein (the “Purchasers”) in connection with a private placement of senior unsecured notes. Under the Note Purchase Agreement, the Company agreed to sell to the Purchasers an aggregate principal amount of $200,000,000 of senior unsecured notes consisting of (i) Series A Senior Notes due December 20, 2024 in an aggregate principal amount of $116 million (the “Series A Notes”) and (ii) Series B Senior Notes due December 20, 2027 in an aggregate principal amount of $84 million (the “Series B Notes,” and, together with the Series A Notes, the “Senior Notes”). On December 20, 2017, the Senior Notes were funded and the proceeds were used to reduce the outstanding balance of the Former BofA Revolver. The Senior Notes bear interest depending on the Company’s credit rating. As of December 31, 2021, the Series A Notes bear interest at 4.49% per annum and the Series B Notes bear interest at 4.76% per annum. The Note Purchase Agreement contains customary financial covenants, including a maximum leverage ratio, a maximum secured leverage ratio, a minimum fixed charge coverage ratio, and a maximum unencumbered leverage ratio. The Note Purchase Agreement also contains restrictive covenants that, among other things, restrict the ability of the Company and its subsidiaries to enter into transactions with affiliates, merge, consolidate, create liens, make certain restricted payments, enter into certain agreements or prepay certain indebtedness. Such financial and restrictive covenants are substantially similar to the corresponding covenants contained in the BofA Credit Facility, the BMO Credit Agreement and the JPM Credit Agreement. The Senior Notes financial covenants require, among other things, the maintenance of a fixed charge coverage ratio of at least 1.50; a maximum leverage ratio and an unsecured leverage ratio of no more than 60% (65% if there were a significant acquisition for a short period of time). In addition, the Note Purchase Agreement provides that the Note Purchase Agreement will automatically incorporate additional financial and other specified covenants (such as limitations on investments and distributions) that are effective from time to time under the existing credit agreements, other material indebtedness or certain other private placements of debt of the Company and its subsidiaries. The Note Purchase Agreement contains customary events of default, including payment defaults, cross defaults with certain other indebtedness, breaches of covenants and bankruptcy events. In the case of an event of default, the Purchasers may, among other remedies, accelerate the payment of all obligations. The Company was in compliance with the Senior Notes financial covenants as of December 31, 2021. |
Financial Instruments_ Derivati
Financial Instruments: Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments: Derivatives and Hedging | |
Financial Instruments: Derivatives and Hedging | 5. Financial Instruments: Derivatives and Hedging On July 22, 2016, the Company fixed the interest rate for the period beginning on September 27, 2017 and ending on September 27, 2021 on the BofA Term Loan (the “2017 Interest Rate Swap”). On March 7, 2019, the Company fixed the interest rate for the period beginning on March 29, 2019 and ended on November 30, 2021 on a million portion of the JPM Term Loan (the “2019 JPM Interest Rate Swap”). On February 20, 2019, the Company fixed the interest rate for the period beginning August 26, 2020 and ending January 31, 2024 on the BMO Term Loan (the “2019 BMO Interest Rate Swap”). The variable rates that were fixed under the 2017 Interest Rate Swap, the 2019 JPM Interest Rate Swap and the 2019 BMO Interest Rate Swap (collectively referred to as the “Interest Rate Swaps”) are described in Note 4. On June 4, 2021, the Company paid approximately $1.2 million to terminate the 2019 JPM Interest Rate Swap that was scheduled to mature on November 30, 2021 and approximately $0.6 million to terminate a portion of the 2019 BMO Interest Rate Swap that was scheduled to mature on November 30, 2021. As a result of the terminations, approximately million of the balance held in accumulated other comprehensive income (loss) was reclassified into earnings. The JPM Term Loan and a portion of the BMO Term Loan related to these interest rate swaps was also repaid on June 4, 2021, which is described in Note 4. The Interest Rate Swaps qualify as cash flow hedges and have been recognized on the consolidated balance sheets at fair value. If a derivative qualifies as a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative’s change in fair value will be recognized in earnings in the same period in which the hedged interest payments affect earnings, which may increase or decrease reported net income and stockholders’ equity prospectively, depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items, but will have no effect on cash flows. The following table summarizes the notional and fair value of our derivative financial instruments at December 31, 2021. The notional value is an indication of the extent of our involvement in these instruments at that time, but does not represent exposure to credit, interest rate or market risks. Notional Strike Effective Expiration Fair Value (2) at (in thousands) Value Rate Date Date December 31, 2021 December 31, 2020 2017 Interest Rate Swap $ 400,000 1.12 % Sep-17 Sep-21 $ — $ (2,947) 2019 JPM Interest Rate Swap $ 100,000 2.44 % Mar-19 Nov-21 $ — $ (2,102) 2019 BMO Interest Rate Swap (1) $ 165,000 2.39 % Aug-20 Jan-24 $ (5,239) $ (12,262) (1) The Notional Value decreased to $165 million on June 4, 2021. (2) Classified within Level 2 of the fair value hierarchy. On December 31, 2021, 2019 BMO Interest Rate Swap was reported as a liability with a fair value of approximately $5.2 million and are included in other liabilities: derivative liabilities in the consolidated balance sheet at December 31, 2021. The gain/(loss) on the Company’s Interest Rate Swaps that was recorded in OCI and the accompanying consolidated statements of income as a component of interest expense for the years ended December 31, 2021, 2020 and 2019, respectively, was as follows: (in thousands) Year Ended December 31, Interest Rate Swaps in Cash Flow Hedging Relationships: 2021 2020 2019 Amounts of gain (loss) recognized in OCI $ 3,786 $ (20,380) $ (15,119) Amounts of previously recorded gain/(loss) reclassified from OCI into Interest Expense $ (8,286) $ (7,751) $ 4,328 Total amount of Interest Expense presented in the consolidated statements of operations $ 32,273 $ 36,026 $ 36,757 Over time, the unrealized gains and losses held in accumulated other comprehensive income will be reclassified into earnings as an increase or reduction to interest expense in the same periods in which the hedged interest payments affect earnings. The Company estimates that approximately The Company is hedging the exposure to variability in anticipated future interest payments on existing debt. The BMO Term Loan, BofA Term Loan and JPM Term Loan hedging transactions used derivative instruments that involve certain additional risks such as counterparty credit risk, the enforceability of hedging contracts and the risk that unanticipated and significant changes in interest rates will cause a significant loss of basis in either or both of the contracts. The Company requires its derivatives contracts to be with counterparties that have investment grade ratings. As a result, the Company does not anticipate that any counterparty will fail to meet its obligations. However, there can be no assurance that the Company will be able to adequately protect against the foregoing risks or that it will ultimately realize an economic benefit that exceeds the related amounts incurred in connection with engaging in such hedging strategies. The fair value of the Company’s derivative instruments are determined using the net discounted cash flows of the expected cash flows of the derivative based on the market based interest rate curve and are adjusted to reflect credit or nonperformance risk. The risk is estimated by the Company using credit spreads and risk premiums that are observable in the market. These financial instruments were classified within Level 2 of the fair value hierarchy and were classified as an asset or liability on the consolidated balance sheets. The Company’s derivatives are recorded at fair value in other assets: derivative asset and other liabilities: derivative liability in the consolidated balance sheets and the effective portion of the derivatives’ fair value is recorded to other comprehensive income in the consolidated statements of other comprehensive income (loss). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity | |
Stockholders' Equity | 6. Stockholders’ Equity Equity-Based Compensation On May 20, 2002, the stockholders of the Company approved the 2002 Stock Incentive Plan (the “Plan”). The Plan is an equity-based incentive compensation plan, and provides for the grants of up to a maximum of 2,000,000 shares of the Company’s common stock (“Awards”). All of the Company’s employees, officers, directors, consultants and advisors are eligible to be granted Awards. Awards under the Plan are made at the discretion of the Company’s Board of Directors, and have no vesting requirements. Upon granting an Award, the Company will recognize compensation cost equal to the fair value of the Company’s common stock, as determined by the Company’s Board of Directors, on the date of the grant. On December 10, 2019, June 4, 2020 and May 20, 2021, the Company granted shares under the Plan to non-employee directors at a compensation cost of approximately $337,000 at each grant date, which is included in general and administrative expenses in the consolidated statements of income. Such shares were fully vested on the date of issuance and are included in the table below. Shares Available Compensation for Grant Cost Balance, December 31, 2018 1,944,428 $ — Shares granted 2019 (38,046) 337,500 Balance December 31, 2019 1,906,382 $ 337,500 Shares granted 2020 (58,998) 337,500 Balance December 31, 2020 1,847,384 $ 675,000 Shares granted 2021 (66,564) 337,500 Balance December 31, 2021 1,780,820 $ 1,012,500 Repurchase of Common Stock On June 23, 2021, the Board of Directors of the Company authorized the repurchase of up to $50 million of the Company’s common stock from time to time in the open market, privately negotiated transactions or other manners as permitted by federal securities laws. The repurchase authorization may be suspended or discontinued at any time. The Company subsequently repurchased 3,396,243 shares of common stock during the third and fourth quarter of 2021 at an aggregate cost of approximately $18.2 million at an average cost of approximately $5.37 per share, inclusive of brokerage commissions. The excess of the purchase price over the par value of the shares repurchased is applied to reduce additional paid-in capital. The Company did not effect any repurchases during 2020. A summary of the repurchase of common stock by the Company is shown in the following table: (Cost in thousands) Shares Repurchased Cost Balance December 31, 2020 1,017,498 $ 18,775 Repurchase of shares 3,396,243 18,244 Balance, December 31, 2021 4,413,741 $ 37,019 |
Federal Income Tax Reporting
Federal Income Tax Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Federal Income Tax Reporting | |
Income Taxes | 7. Federal Income Tax Reporting General The Company has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended (the “Code”). As a REIT, the Company generally is entitled to a tax deduction for distributions paid to its shareholders, thereby effectively subjecting the distributed net income of the Company to taxation at the shareholder level only. The Company must comply with a variety of restrictions to maintain its status as a REIT. These restrictions include the type of income it can earn, the type of assets it can hold, the number of shareholders it can have and the concentration of their ownership, and the amount of the Company’s taxable income that must be distributed annually. One such restriction is that the Company generally cannot own more than 10% of the voting power or value of the securities of any one issuer unless the issuer is itself a REIT or a taxable REIT subsidiary (“TRS”). In the case of TRSs, the Company’s ownership of securities in all TRSs generally cannot exceed of the value of all of the Company’s assets. FSP Investments LLC and FSP Protective TRS Corp. are the Company’s taxable REIT subsidiaries operating as taxable corporations under the Code. The TRSs have gross amounts of net operating losses (“NOLs”) available to those taxable corporations of million and million as of each of December 31, 2021 and 2020, respectively. The NOLs created prior to 2018 will expire between 2030 and 2047 and the NOLs generated after 2017 will not expire. A valuation allowance is provided for the full amount of the NOLs as the realization of any tax benefits from such NOLs is not assured. Income taxes are recorded based on the future tax effects of the difference between the tax and financial reporting bases of the Company’s assets and liabilities. In estimating future tax consequences, potential future events are considered except for potential changes in income tax law or in rates. The Company adopted an accounting pronouncement related to uncertainty in income taxes effective January 1, 2007, which did not result in recording a liability, nor was any accrued interest and penalties recognized with the adoption. Accrued interest and penalties will be recorded as income tax expense if the Company records a liability in the future. The Company’s effective tax rate was not affected by the adoption. The Company and one or more of its subsidiaries files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The statute of limitations for the Company’s income tax returns is generally three years and as such, the Company’s returns that remain subject to examination would be primarily from 2018 and thereafter. The Company is subject to a business tax known as the Revised Texas Franchise Tax. Some of the Company’s leases allow reimbursement by tenants for these amounts because the Revised Texas Franchise Tax replaces a portion of the property tax for school districts. Because the tax base on the Revised Texas Franchise Tax is derived from an income based measure, it is considered an income tax. The Company recorded a provision for the Revised Texas Franchise Tax of million for the years ended December 31, 2021, 2020 and 2019, respectively. Net operating losses Section 382 of the Code restricts a corporation’s ability to use net operating losses (“NOLs”) to offset future taxable income following certain “ownership changes.” Such ownership changes occurred with past mergers and accordingly a portion of the NOLs incurred by the Sponsored REITs available for use by the Company in any particular future taxable year will be limited. To the extent that the Company does not utilize the full amount of the annual NOLs limit, the unused amount may be carried forward to offset taxable income in future years. NOLs expire 20 years after the year in which they arise, and the last of the Company’s NOLs will expire in 2027. Approximately $0.1 million of NOLs expired in 2021. The Company is expecting to use approximately $11.8 million of NOLs in 2021 to offset federal net taxable capital gains resulting from the sale of properties in 2021, therefore approximately $11.8 million of valuation allowances were reversed in 2021. A valuation allowance is provided for the full amount of the gross NOLs available as the realization of any tax benefits remaining from such NOLs is not assured. The gross amount of NOLs available to the Company was approximately $1.1 million and $13.0 million as of each of December 31, 2021 and 2020, respectively with full valuation allowances. Income Tax Expense The income tax expense reflected in the consolidated statements of income relates primiarly to state income taxes as a result of some states that limit the use of net operating losses, which are in Other Taxes, and to a lesser extent, the Revised Texas Franchise Tax. FSP Protective TRS Corp. provides taxable services to tenants at some of the Company’s properties. For the Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Revised Texas Franchise Tax $ 234 $ 250 $ 394 Other Taxes 404 — (125) Tax expense $ 638 $ 250 $ 269 Taxes on income are a current tax expense. No deferred income taxes were provided as there were no material temporary differences between the financial reporting basis and the tax basis of the TRSs. At December 31, 2021, the Company’s net tax basis of its real estate assets is more than the amount set forth in the Company’s consolidated balance sheets by $153.7 million and at December 31, 2020, the Company’s net tax basis of its real estate assets is more than the amount set forth in the Company’s consolidated balance sheets by $253.0 million. Tax Components The following summarizes the tax components of the Company’s common distributions paid per share for the years ended December 31, 2021, 2020 and 2019: 2021 2020 2019 Per Share % Per Share % Per Share % Ordinary income (1) $ — — % $ 0.28 77.51 % $ 0.25 69.96 % Capital gain 0.68 100 % 0.06 16.72 % — — % Return of capital — — % 0.02 5.77 % 0.11 30.04 % Total $ 0.68 100 % $ 0.36 100 % $ 0.36 100 % (1) The 2019 Ordinary income amount includes a qualified distribution, which is a subset of, and included in, the ordinary income amount and is $0.009 per share or 2.52% of total distributions. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Leases | 8. Leases Leases as a Lessee: The Company entered into a noncancelable contract with a third party to obtain office space that commenced on September 1, 2010. The contract was amended on October 25, 2016 to extend the contract through September 30, 2024. As of December 31, 2021, the Company’s right-of-use asset was $1.1 million, which is included in prepaid and other assets on the consolidated balance sheet as of December 31, 2021. The Company has an option to extend the terms of its office space lease with one 5-year extension option. As of December 31, 2021, the exercise of the extension option was not reasonably certain. Therefore, the extension option is not recognized as part of the Company’s right-of-use asset and lease liability. A discount rate equal to the Company’s incremental borrowing rate was applied to the future monthly contractual lease payments remaining as of December 31, 2021 to compute the lease liability. The incremental borrowing rate is the rate equal to the closest borrowing under the Former BofA Revolver at the time of the Company’s adoption of ASU 2016-02. Lease Costs Year Ended (in thousands) December 31, 2021 December 31, 2020 December 31, 2019 Operating lease cost $ 419 $ 419 $ 419 $ 419 $ 419 $ 419 Other information Cash paid for amounts included in the measurement of lease liabilities 429 421 412 Weighted average remaining lease terms in years - operating leases 2.75 3.75 4.75 Weighted average discount rate - operating leases 3.86% 3.86% 3.86% Maturity analysis for liabilities Total Undiscounted (in thousands) Cash Flows Discount rate at commencement 3.86% 2022 438 2023 447 2024 340 $ 1,225 Present value lease liability $ 1,159 Difference between undiscounted cash flows and discounted cash flows $ 66 Leases as a Lessor: The Company is a lessor of commercial real estate with operations that include the leasing of office and industrial properties. Many of the leases with customers contain options to extend leases at a fair market rate and may also include options to terminate leases. The Company considers several inputs when evaluating the amount it expects to derive from its leased assets at the end of the lease terms, such as the remaining useful life, expected market conditions, fair value of lease payments, expected fair values of underlying assets, and expected deployment of the underlying assets. The Company’s strategy to address its risk for the residual value in its commercial real estate is to re-lease the commercial space. The Company has elected to apply the practical expedient to not separate non-lease components from the related lease component of real estate leases. This combined component is primarily comprised of fixed lease payments, early termination fees, common area maintenance cost reimbursements, and parking lease payments. The Company applies ASC 842-Leases to the combined lease and non-lease components. A minority of the Company’s leases are subject to annual changes in the Consumer Price Index (“CPI”). Although increases in the CPI are not estimated as part of the Company’s measurement of straight-line rent revenue, to the extent that the actual CPI is greater or less than the CPI at lease commencement, there could be changes to realized income or loss. For the year ended December 31, 2021, 2020 and 2019, the Company recognized the following amounts of income relating to lease payments: Income relating to lease payments: Year Ended (in thousands) December 31, 2021 December 31, 2020 December 31, 2019 Income from leases (1) $ 203,530 $ 242,209 $ 256,250 $ 203,530 $ 242,209 $ 256,250 Undiscounted Cash Flows Year ending (in thousands) December 31, 2022 100,269 2023 103,107 2024 97,792 2025 83,596 2026 70,718 2027 and thereafter 259,673 $ 715,155 (1) Amounts recognized from variable lease payments were $54,825, $61,310 and $64,421 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Retirement Plan
Retirement Plan | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Plan | |
Retirement Plan | 9. Retirement Plan In 2006, the Company established a 401(k) plan to cover eligible employees, which permitted deferral of up to $17,000 per year (indexed for inflation) into the 401(k) plan, subject to certain limitations imposed by the Internal Revenue Code. An employee’s elective deferrals are immediately vested upon contribution to the 401(k) plan. The Company matches employee contributions to the 401(k) plan dollar for dollar up to 3% of each employee’s annual compensation up to $200,000. In addition, we may elect to make an annual discretionary profit-sharing contribution. The Company’s total contribution under the 401(k) plan amounted to $0.1 million, $0.1 million and $0.2 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Dispositions of Property
Dispositions of Property | 12 Months Ended |
Dec. 31, 2021 | |
Dispositions of property | |
Dispositions of properties | 10. Dispositions of Property In 2021, the Company determined that further debt reduction would provide greater financial flexibility and potentially increase shareholder value. Accordingly, the Company adopted a strategy to dispose of certain properties in 2021 where it believes valuation potential has been reached. The Company sold million. The Company sold an office property in Dulles, Virginia on June 29, 2021 for a sales price of approximately million. The Company sold an office property located in Indianapolis, Indiana on August 31, 2021 for a sales price of approximately million. The Company sold million. The Company sold an office property in Atlanta, Georgia on October 22, 2021, for a sales price of approximately million. The Company sold million. The Company used the proceeds of the dispositions principally to repay outstanding indebtedness. The Company sold an office property located in Durham, North Carolina on December 23, 2020 for a sales price of approximately $89.7 million, at a gain of approximately $41.9 million. The Company reports the results of operations of its properties in its consolidated statements of operations, which includes rental income, rental operating expenses, real estate taxes and insurance and depreciation and amortization. The operating results for the properties that the Company disposed of are summarized below: For the Years Ended December 31, (in thousands) 2021 2020 2019 Rental revenue $ 38,958 $ 72,967 $ 74,626 Rental operating expenses (11,518) (20,651) (22,867) Real estate taxes and insurance (5,654) (11,165) (10,851) Depreciation and amortization (11,929) (26,552) (26,927) Income from dispositions $ 9,857 $ 14,599 $ 13,981 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events | |
Subsequent Events | 11. Subsequent Events On January 10, 2022, the Company entered into a credit agreement for a new revolving line of credit for borrowings, at the Company’s election, of up to $217.5 million (the “BofA Revolver”), which may be borrowed, repaid and reborrowed from time to time until the maturity date on January 12, 2024. The Company has the right to request an extension of the maturity date, subject to acceptance by the lenders and satisfaction of certain other customary conditions. The BofA Revolver includes an accordion feature that allows the Company to request an increase in borrowing capacity to an amount not exceeding $750 million in the aggregate, subject to receipt of lender commitments and satisfaction of certain customary conditions. Effective simultaneously with the closing of the BofA Revolver on January 10, 2022, the Company terminated the Former BofA Revolver. The Former BofA Revolver would have matured by its own terms on January 12, 2022. On January 12, 2022, the Company paid a special cash distribution of $0.32 per share of common stock, which was declared on December 3, 2021 for shareholders of record on December 31, 2021. On January 14, 2022, the Board of Directors of the Company declared a cash distribution of $0.09 per share of common stock payable on February 17, 2022 to stockholders of record on January 28, 2022. On February 10, 2022, the Company increased its BofA Revolver availability by $20.0 million to $237.5 million as part of the accordion feature that is available to increase borrowing capacity. |
Schedule II Valuation and quali
Schedule II Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2021 | |
Schedule II Valuation and qualifying accounts: | |
Schedule II Valuation and qualifying accounts: | Schedule II Franklin Street Properties Corp. Valuation and qualifying accounts: Additions (Decreases) Balance at charged to Balance (in thousands) beginning costs and at end Classification of year expenses Deductions of year Allowance for doubtful accounts 2019 $ 200 $ 213 $ (113) $ 300 2020 300 340 (135) 505 2021 505 157 (129) 533 Straight-line rent allowance for doubtful accounts 2019 $ 50 $ — $ — $ 50 2020 50 — (50) — 2021 — — — — |
SCHEDULE III REAL ESTATE AND AC
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | 12 Months Ended |
Dec. 31, 2021 | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | |
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION | SCHEDULE III FRANKLIN STREET PROPERTIES CORP. REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2021 Initial Cost Historical Cost Costs Capitalized Buildings Total Costs, Buildings (Disposals) Improvements Net of Depreciable Date of Encumbrances Improvements Subsequent to and Accumulated Accumulated Life Year Acquisition Description (1) Land and Equipment Acquisition Land Equipment Total (2) Depreciation Depreciation Years Built (3) (in thousands) Commercial Properties: Forest Park, Charlotte, NC — $ 1,559 $ 5,672 $ 3,051 $ 1,559 $ 8,723 $ 10,282 2,576 $ 7,706 5 - 39 1999 1999 Northwest Point, Elk Grove Village, IL — 2,914 26,295 13,023 2,914 39,318 42,232 20,586 21,646 5 - 39 1999 2001 Park Ten, Houston, TX — 1,061 21,303 7,082 567 28,879 29,446 14,214 15,232 5 - 39 1999 2002 Addison, Addison, TX — 4,325 48,040 12,495 4,325 60,535 64,860 25,772 39,088 5 - 39 1999 2002 Collins, Richardson, TX — 4,000 42,598 8,804 4,000 51,402 55,402 24,755 30,647 5 - 39 1999 2003 Greenwood, Englewood, CO — 3,100 30,201 12,530 3,100 42,731 45,831 20,295 25,536 5 - 39 2000 2005 Innsbrook, Glenn Allen, VA — 5,000 40,216 9,002 5,000 49,218 54,218 20,578 33,640 5 - 39 1999 2003 380 Interlocken, Bloomfield, CO — 8,275 34,462 13,194 8,275 47,656 55,931 19,130 36,801 5 - 39 2000 2003 Blue Lagoon, Miami, FL — 6,306 46,124 33,388 6,306 79,512 85,818 16,927 68,891 5 - 39 2002 2003 Eldridge Green, Houston, TX — 3,900 43,791 5,923 3,900 49,714 53,614 21,202 32,412 5 - 39 1999 2004 Liberty Plaza, Addison, TX — 4,374 21,146 10,542 4,374 31,688 36,062 13,172 22,890 5 - 39 1985 2006 390 Interlocken, Broomfield, CO — 7,013 37,751 14,399 7,013 52,150 59,163 20,579 38,584 5 - 39 2002 2006 Park Ten II, Houston, TX — 1,300 31,712 7,245 1,300 38,957 40,257 13,458 26,799 5 - 39 2006 2006 121 South Eight Street, Minneapolis, MN — 4,444 15,214 28,449 4,444 43,663 48,107 12,968 35,139 5 - 39 1974 2010 801 Marquette Ave South, Minneapolis, MN — 4,184 — 27,798 4,184 27,798 31,982 2,889 29,093 5 - 39 1923 2010 909 Davis, Evanston, IL — 4,912 18,229 8,235 4,912 26,464 31,376 8,145 23,231 5 - 39 2002 2011 Legacy Tennyson Center, Plano, TX — 3,067 22,064 4,046 3,067 26,110 29,177 7,756 21,421 5 - 39 2008 2011 One Legacy Circle, Plano, TX — 2,590 36,608 4,822 2,590 41,430 44,020 11,945 32,075 5 - 39 2008 2011 Westchase I & II, Houston, TX — 8,491 121,508 17,044 8,491 138,552 147,043 33,721 113,322 5 - 39 2008 2012 1999 Broadway, Denver CO — 16,334 137,726 39,108 16,334 176,834 193,168 40,105 153,063 5 - 39 1986 2013 1001 17th Street, Denver, CO — 17,413 165,058 24,286 17,413 189,344 206,757 41,367 165,390 5 - 39 2006 2013 Plaza Seven, Minneapolis, MN — 6,604 54,240 11,468 6,604 65,708 72,312 11,471 60,841 5 - 39 1987 2016 Pershing Plaza, Atlanta, GA — 5,300 34,158 4,119 5,300 38,277 43,577 5,147 38,430 5 - 39 1989 2016 600 17th Street, Denver, CO — 20,876 99,941 14,005 20,876 113,946 134,822 15,729 119,093 5 - 39 1982 2016 Balance — Real Estate — $ 147,342 $ 1,134,057 $ 334,058 $ 146,848 $ 1,468,609 $ 1,615,457 $ 424,487 $ 1,190,970 (1) There are no encumbrances on the above properties. (2) The aggregate cost for Federal Income Tax purposes is $1,773,262 . (3) Original date of acquisition by Sponsored Entity. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include all of the accounts of the Company and its majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Estimates and Assumptions | Estimates and Assumptions The Company prepares its financial statements and related notes in conformity with generally accepted accounting principles in the United States of America (“GAAP”). These principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates in the consolidated financial statements include the allowance for doubtful accounts, allowance for credit losses, purchase price allocations, impairment considerations, useful lives of fixed assets and the valuation of derivatives. |
Investments in non-consolidated REITs | Investments in non-consolidated REITs As of December 31, 2021, the Company has a non-controlling common stock interest in two Sponsored REITs in which the Company no longer shares in economic benefit or risk. The Company had a non-controlling common stock interest in another Sponsored REIT and a non-controlling preferred stock interest in additional Sponsored REITs, each of which were liquidated during 2019 or 2018. The Company exercised influence over, but did not control these entities and investments were accounted for using the equity method. Under the equity method of accounting, the Company's cost basis was adjusted by its share of the Sponsored REITs' earnings or losses. The equity investments in Sponsored REITS were reviewed for impairment each reporting period. The Company recorded impairment charges when events or circumstances indicated a decline in the fair value below the carrying value of the investment had occurred and such decline was other-than-temporary. |
Variable Interest Entities | Variable Interest Entities (VIEs) We determine whether an entity is a VIE and, if so, whether it should be consolidated by utilizing judgments and estimates that are inherently subjective. The determination of whether an entity in which we hold a direct or indirect variable interest is a VIE is based on several factors, including whether the entity’s total equity investment at risk upon inception is sufficient to finance the entity’s activities without additional subordinated financial support. We make judgments regarding the sufficiency of the equity at risk based first on a qualitative analysis, and then a quantitative analysis, if necessary. We analyze any investments in VIEs to determine if we are the primary beneficiary. In evaluating whether we are the primary beneficiary, we evaluate our direct and indirect economic interests in the entity. Determining which reporting entity, if any, is the primary beneficiary of a VIE is primarily a qualitative approach focused on identifying which reporting entity has both (1) the power to direct the activities of a VIE that most significantly impact such entity’s economic performance and (2) the obligation to absorb losses or the right to receive benefits from such entity that could potentially be significant to such entity. Performance of that analysis requires the exercise of judgment. We consider a variety of factors in identifying the entity that holds the power to direct matters that most significantly impact the VIE’s economic performance including, but not limited to, the ability to direct a proposed sale of the property or merger of the company. In addition, we consider the rights of other investors to participate in those decisions, to replace the manager and to amend the corporate charter. We determine whether we are the primary beneficiary of a VIE at the time we become involved with a variable interest entity and reconsider that conclusion upon a reconsideration event. As of December 31, 2021, our relationship with FSP Monument Circle LLC was considered a VIE for which we are not the primary beneficiary. Our maximum exposure to losses associated with this VIE is limited to the outstanding Sponsored REIT Loan, the related accrued interest receivable and an exit fee receivable, which were in aggregate approximately $24.5 million at December 31, 2021. The accrued interest and exit fee receivables are included in prepaid expenses and other assets in the consolidated balance sheet and are approximately $0.5 million at December 31, 2021. The relationships and investments related to the entity in which we have a variable interest with are summarized in Note 3, Related Party Transactions and Investments in Non-Consolidated Entities. |
Real Estate and Depreciation | Real Estate and Depreciation Real estate assets are stated at cost less accumulated depreciation. The Company allocates the value of real estate acquired among land, buildings and identified intangible assets or liabilities. Costs related to land, building and improvements are capitalized. Typical capital items include new roofs, site improvements, various exterior building improvements and major interior renovations. Costs incurred in connection with leasing (primarily tenant improvements and leasing commissions) are capitalized and amortized over the lease period. Routine replacements and ordinary maintenance and repairs that do not extend the life of the asset are expensed as incurred. Depreciation is computed using the straight-line method over the assets’ estimated useful lives as follows: Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 The Company reviews its properties to determine if their carrying amounts will be recovered from future operating cash flows if certain indicators of impairment are identified at those properties. These indicators may include declining tenant occupancy, weak or declining tenant profitability, cash flows or liquidity, the Company’s decision to dispose of an asset before the end of its estimated useful life or legislative, economic, or market changes that permanently reduce the value of the Company’s investment. If indicators of impairment are present, the Company evaluates the carrying value of the property by comparing it to its expected future undiscounted cash flow. If the Company determines that impairment has occurred, the affected assets are reduced to their fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future occupancy, rental rates and capital requirements that could differ materially from actual results in future periods. Since cash flows are considered on an undiscounted basis in the analysis that the Company conducts to determine whether an asset has been impaired, the Company’s strategy of holding properties over the long term directly decreases the likelihood of recording an impairment loss. If the Company’s strategy changes or market conditions otherwise dictate an earlier sale date, an impairment loss may be recognized. The Company did not recognize any impairment losses for the years ended December 31, 2021, 2020 or 2019. |
Acquired Real Estate Leases and Amortization | Acquired Real Estate Leases and Amortization Acquired real estate leases represent costs associated with acquiring an in-place lease (i.e., the market cost to execute a similar lease, including leasing commission, tenant improvements, legal, vacancy and other related costs) and the value relating to leases with rents above the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 12 months to 154 months . Amortization of these combined components was approximately $8.2 million, $12.5 million and $18.9 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization related to costs associated with acquiring an in-place lease is included in depreciation and amortization on the consolidated statements of income. Amortization related to leases with rents above the market rate is offset against the rental revenue in the consolidated statements of income. The estimated annual amortization expense for the five years and thereafter following December 31, 2021 is as follows: (in thousands) December 31, 2022 $ 3,882 2023 3,211 2024 2,870 2025 2,196 2026 1,789 2027 and thereafter 986 |
Acquired Unfavorable Real Estate Leases and Amortization | Acquired Unfavorable Real Estate Leases and Amortization Acquired unfavorable real estate leases represent the value relating to leases with rents below the market rate. Amortization is computed using the straight-line method over the term of the leases, which range from 64 months to 151 months . Amortization expense was approximately $0.5 million, $0.9 million and $1.3 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization related to leases with rents below the market rate is included with rental revenue in the consolidated statements of income. The estimated annual amortization for the five years and thereafter following December 31, 2021 is as follows: (in thousands) December 31, 2022 $ 161 2023 104 2024 93 2025 60 2026 31 2027 and thereafter 79 |
Assets held for sale | Asset Held For Sale Classification of a property as held for sale typically occurs upon the execution of a purchase and sale agreement and belief by management that the sale or disposition is probable of occurrence within one year . Upon determining that a property was held for sale, the Company discontinues depreciating the property and reflects the property in its consolidated balance sheet at the lower of its carrying amount or fair value less the cost to sell. The Company presents the property held for sale on its consolidated balance sheet as “Asset held for sale”. The Company reports the results of operations of its properties sold or held for sale in its consolidated statements of income through the date of sale. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the consolidated statement of cash flows. December 31, December 31, (in thousands) 2021 2020 Cash and cash equivalents $ 34,308 $ 2,650 Restricted cash 6,443 1,500 Total cash, cash equivalents and restricted cash $ 40,751 $ 4,150 |
Cash, Cash Equivalents and Restricted Cash | Restricted Cash Restricted cash consists of tenant security deposits, which are required by law in some states or by contractual agreement to be kept in a segregated account, and escrows arising from property sales. Tenant security deposits are refunded when tenants vacate, provided that the tenant has not damaged the property. Cash held in escrow is paid when the related issue is resolved. Restricted cash also may include funds segregated for specific tenant improvements per lease agreements. |
Tenant Rent Receivables | Tenant Rent Receivables Tenant rent receivables are expected to be collected within one year . The Company provided an allowance for doubtful accounts based on collectability. The Company recognizes the effect of a change in its assessment of whether the collectability of operating lease receivables are probable as an adjustment to lease income rather than bad debt expense. |
Related Party Mortgage Loan Receivable | Related Party Mortgage Loan Receivable Management monitors and evaluates the secured loans compared to the expected performance, cash flow and value of the underlying real estate and has not experienced a loss on these loans to date. |
Concentration of Credit Risks | Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash investments, derivatives, related party mortgage loan receivable and accounts receivable. The Company maintains its cash balances principally in banks which the Company believes to be creditworthy. The Company periodically assesses the financial condition of the banks and believes that the risk of loss is minimal. Cash balances held with various financial institutions frequently exceed the insurance limit of provided by the Federal Deposit Insurance Corporation. The derivatives that the Company has are from interest rate swap agreements that are discussed in Note 5. The related party mortgage loan receivable is held with Sponsored REIT. The Company performs regular evaluations on the extent and impact of any credit deterioration that could affect the performance and value of the secured property, as well as the financial and operating capability of the borrower. The Company performs ongoing credit evaluations of its tenants and requires certain tenants to provide security deposits or letters of credit. Though these security deposits and letters of credit are insufficient to meet the total value of a tenant’s lease obligation, they are a measure of good faith and a source of funds to offset the economic costs associated with lost rent and the costs associated with re-tenanting the space. The Company has no single tenant which accounts for more than |
Financial Instruments | Financial Instruments The Company estimates that the carrying values of cash and cash equivalents, restricted cash, receivables, prepaid expenses, accounts payable and accrued expenses, accrued compensation, and tenant security deposits approximate their fair values based on their short-term maturity and the bank note and term loans payable approximate their fair values as they bear interest at variable interest rates. |
Straight-line Rent Receivable | Straight-line Rent Receivable Certain leases provide for fixed rent increases over the term of the lease. Rental revenue is recognized on a straight-line basis over the related lease term; however, billings by the Company are based on the lease agreements. Straight-line rent receivable, which is the cumulative revenue recognized in excess of amounts billed by the Company, was 31, 2021, 2020 and 2019, respectively. Prior to 2020, the Company provided an allowance for doubtful accounts based on collectability. The Company recognized the effect of a change in its assessment of whether the collectability of operating lease receivables are probable as an adjustment to lease income rather than bad debt expense. The reserve was eliminated during 2020 and no changes occurred during 2019 based on such assessment. |
Deferred Leasing Commissions | Deferred Leasing Commissions Deferred leasing commissions represent direct and incremental external leasing costs incurred in the leasing of commercial space. These costs are capitalized and are amortized on a straight-line basis over the terms of the related lease agreements. Amortization expense was approximately The estimated annual amortization for the five years and thereafter following December 31, 2021 is as follows: (in thousands) December 31, 2022 $ 6,504 2023 6,081 2024 5,299 2025 4,377 2026 3,586 2027 and thereafter 12,464 |
Common Share Repurchases | Common Share Repurchases The Company recognizes the gross cost of the common shares it repurchases as a reduction in stockholders’ equity using the treasury stock method. Maryland law does not recognize a separate treasury stock account but provides that shares repurchased are classified as authorized but unissued shares. Accordingly, the Company reduces common stock for the par value and the excess of the purchase price over the par value is a reduction to additional paid-in capital. |
Revenue Recognition | Revenue Recognition Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2021 2020 2019 Income from leases $ 148,705 $ 180,899 $ 191,828 Reimbursable expenses 54,825 61,310 64,421 Straight-line rent adjustment 4,017 1,685 8,876 Amortization of favorable and unfavorable leases 34 313 402 $ 207,581 $ 244,207 $ 265,527 |
Rental Revenue | Rental Revenue - The Company has retained substantially all of the risks and benefits of ownership of the Company’s commercial properties and accounts for its leases as operating leases. Rental revenue includes income from leases, certain reimbursable expenses, straight-line rent adjustments and other income associated with renting the property. Rental income from leases, which includes rent concessions (including free rent and other lease inducements) and scheduled increases in rental rates during the lease term, is recognized on a straight-line basis. The Company does not have any significant percentage rent arrangements with its commercial property tenants. Reimbursable expenses are included in rental income in the period earned. A summary of rental revenue is shown in the following table: Year Ended December 31, (in thousands) 2021 2020 2019 Income from leases $ 148,705 $ 180,899 $ 191,828 Reimbursable expenses 54,825 61,310 64,421 Straight-line rent adjustment 4,017 1,685 8,876 Amortization of favorable and unfavorable leases 34 313 402 $ 207,581 $ 244,207 $ 265,527 |
Related Party and Other Revenue | Related Party and Other Revenue - |
Segment Reporting | Segment Reporting The Company is a REIT focused on real estate investments primarily in the office market and currently operates in only one segment: real estate operations. |
Income Taxes | Income Taxes Taxes on income for the years ended December 31, 2021, 2020 and 2019 represent taxes incurred by FSP Protective TRS Corp, which is a taxable REIT subsidiary, and the State of Texas franchise tax applicable to FSP Corp., which is classified as an income tax for reporting purposes. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised or converted into shares. There were |
Derivative Instruments | Derivative Instruments The Company recognizes derivatives on the consolidated balance sheets at fair value. Derivatives that do not qualify, or are not designated as hedge relationships, must be adjusted to fair value through income. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the consolidated balance sheets as either an asset or liability. To the extent hedges are effective, a corresponding amount, adjusted for swap payments, is recorded in accumulated other comprehensive income within stockholders’ equity. Amounts are then reclassified from accumulated other comprehensive income to the income statement in the period or periods the hedged forecasted transaction affects earnings. Ineffectiveness, if any, is recognized in other comprehensive income (“OCI”) and reclassified into the income statement. The Company reviews the effectiveness of each hedging transaction, which involves estimating future cash flows, at least quarterly. Derivative instruments designated in a hedge relationship to mitigate exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. The Company currently has |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is also an established fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value. Financial assets and liabilities recorded on the consolidated balance sheets at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access. Level 2 inputs are inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as inputs that are observable for the asset or liability (other than quoted prices), such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs for the asset or liability, which is typically based on an entity’s own assumptions, as there is little, if any, related market activity or information. In instances where the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability including credit risk, which was not significant to the overall value. These inputs (See Notes 3 and 5) were considered and applied to the Company’s derivative instruments and Sponsored REIT Loan. Level 2 inputs were used to value the interest rate swaps and Level 3 inputs were used to value the Sponsored REIT Loan. |
Subsequent Events | Subsequent Events In preparing these consolidated financial statements the Company evaluated events that occurred through the date of issuance of these financial statements for potential recognition or disclosure. |
Recent Accounting Standards | Recent Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). ASU 2020-04 contains practical expedients for reference rate reform related activities that impact debt, leases, derivatives and other contracts. The guidance in ASU 2020-04 is optional and may be elected over time as reference rate reform activities occur. The Company is currently assessing the potential impact that the adoption of ASU 2020-04 may have on its consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies | |
Schedule of estimated useful lives of real estate assets | Category Years Commercial buildings 39 Building improvements 15 - 39 Fixtures and equipment 3 - 7 |
Schedule of estimated annual amortization expense for succeeding five years for acquired in-place lease and above-market leases | (in thousands) December 31, 2022 $ 3,882 2023 3,211 2024 2,870 2025 2,196 2026 1,789 2027 and thereafter 986 |
Schedule of estimated annual amortization for unfavorable leases | (in thousands) December 31, 2022 $ 161 2023 104 2024 93 2025 60 2026 31 2027 and thereafter 79 |
Schedule of Cash and cash equivalents | December 31, December 31, (in thousands) 2021 2020 Cash and cash equivalents $ 34,308 $ 2,650 Restricted cash 6,443 1,500 Total cash, cash equivalents and restricted cash $ 40,751 $ 4,150 |
Schedule of estimated annual amortization for deferred leasing commissions | (in thousands) December 31, 2022 $ 6,504 2023 6,081 2024 5,299 2025 4,377 2026 3,586 2027 and thereafter 12,464 |
Summary of rental revenue | Year Ended December 31, (in thousands) 2021 2020 2019 Income from leases $ 148,705 $ 180,899 $ 191,828 Reimbursable expenses 54,825 61,310 64,421 Straight-line rent adjustment 4,017 1,685 8,876 Amortization of favorable and unfavorable leases 34 313 402 $ 207,581 $ 244,207 $ 265,527 |
Related Party Transactions an_2
Related Party Transactions and Investments in Non-Consolidated Entities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions and Investments in Non-Consolidated Entities | |
Schedule of equity in losses of investments in non-consolidated REITs | Year Ended December 31, (in thousands) 2021 Equity in income of East Wacker $ 421 Total $ 421 |
Schedule of distributions received from non-consolidated REITs | Year Ended December 31, (in thousands) 2021 Distributions from East Wacker $ 421 $ 421 |
Summary of the Sponsored REIT Loans outstanding | Maximum Amount Interest (dollars in thousands, except footnotes) Maturity Amount Outstanding Rate at Sponsored REIT Location Date of Loan 31-Dec-21 31-Dec-21 Mortgage loan secured by property FSP Monument Circle LLC (1) Indianapolis, IN 30-Jun-23 $ 24,000 $ 24,000 7.51 % $ 24,000 $ 24,000 (1) This mortgage loan includes an origination fee of $164,000 and an exit fee of $38,000 when repaid by the borrower. |
Bank Note Payable, Term Note _2
Bank Note Payable, Term Note Payable and Private Placements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BAML Revolver | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | Base LIBOR Rate Facility Rate Level Credit Rating Margin Fee Margin I A- / A3 (or higher) 0.825 % 0.125 % 0.000 % II BBB+ / Baa1 0.875 % 0.150 % 0.000 % III BBB / Baa2 1.000 % 0.200 % 0.000 % IV BBB- / Baa3 1.200 % 0.250 % 0.200 % V <BBB- / Baa3 1.550 % 0.300 % 0.550 % |
BAML Term Loan | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | LIBOR Rate Base Rate Level Credit Rating Margin Margin I A- / A3 (or higher) 0.900 % 0.000 % II BBB+ / Baa1 0.950 % 0.000 % III BBB / Baa2 1.100 % 0.100 % IV BBB- / Baa3 1.350 % 0.350 % V <BBB- / Baa3 1.750 % 0.750 % |
BMO Term Loan | |
Debt Instrument [Line Items] | |
Schedule of actual amount of applicable facility fee, LIBOR rate or base rate determined based on total leverage ratio | Credit LIBOR Rate Base Rate Level Rating Margin Margin I A- / A3 (or higher) 85.0 bps — bps II BBB+ / Baa1 90.0 bps — bps III BBB / Baa2 100.0 bps — bps IV BBB- / Baa3 125.0 bps 25.0 bps V <BBB- / Baa3 165.0 bps 65.0 bps |
Financial Instruments_ Deriva_2
Financial Instruments: Derivatives and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Financial Instruments: Derivatives and Hedging | |
Schedule of notional and fair value of derivative financial instruments | Notional Strike Effective Expiration Fair Value (2) at (in thousands) Value Rate Date Date December 31, 2021 December 31, 2020 2017 Interest Rate Swap $ 400,000 1.12 % Sep-17 Sep-21 $ — $ (2,947) 2019 JPM Interest Rate Swap $ 100,000 2.44 % Mar-19 Nov-21 $ — $ (2,102) 2019 BMO Interest Rate Swap (1) $ 165,000 2.39 % Aug-20 Jan-24 $ (5,239) $ (12,262) (1) The Notional Value decreased to $165 million on June 4, 2021. (2) Classified within Level 2 of the fair value hierarchy. |
Summary of Interest Rate Swaps that was recorded in OCI | (in thousands) Year Ended December 31, Interest Rate Swaps in Cash Flow Hedging Relationships: 2021 2020 2019 Amounts of gain (loss) recognized in OCI $ 3,786 $ (20,380) $ (15,119) Amounts of previously recorded gain/(loss) reclassified from OCI into Interest Expense $ (8,286) $ (7,751) $ 4,328 Total amount of Interest Expense presented in the consolidated statements of operations $ 32,273 $ 36,026 $ 36,757 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity | |
Schedule of Share-based Payment Arrangement, Nonemployee Director Award Plan, Activity | Shares Available Compensation for Grant Cost Balance, December 31, 2018 1,944,428 $ — Shares granted 2019 (38,046) 337,500 Balance December 31, 2019 1,906,382 $ 337,500 Shares granted 2020 (58,998) 337,500 Balance December 31, 2020 1,847,384 $ 675,000 Shares granted 2021 (66,564) 337,500 Balance December 31, 2021 1,780,820 $ 1,012,500 |
Schedule of repurchase of common stock | (Cost in thousands) Shares Repurchased Cost Balance December 31, 2020 1,017,498 $ 18,775 Repurchase of shares 3,396,243 18,244 Balance, December 31, 2021 4,413,741 $ 37,019 |
Federal Income Tax Reporting (T
Federal Income Tax Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Federal Income Tax Reporting | |
Schedule of income tax expense reflected in the condensed consolidated statements of income | For the Year Ended December 31, (Dollars in thousands) 2021 2020 2019 Revised Texas Franchise Tax $ 234 $ 250 $ 394 Other Taxes 404 — (125) Tax expense $ 638 $ 250 $ 269 |
Summary of tax components of Company's common distribution paid per share | 2021 2020 2019 Per Share % Per Share % Per Share % Ordinary income (1) $ — — % $ 0.28 77.51 % $ 0.25 69.96 % Capital gain 0.68 100 % 0.06 16.72 % — — % Return of capital — — % 0.02 5.77 % 0.11 30.04 % Total $ 0.68 100 % $ 0.36 100 % $ 0.36 100 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases | |
Summary of lease costs and maturity analysis for liabilities | Lease Costs Year Ended (in thousands) December 31, 2021 December 31, 2020 December 31, 2019 Operating lease cost $ 419 $ 419 $ 419 $ 419 $ 419 $ 419 Other information Cash paid for amounts included in the measurement of lease liabilities 429 421 412 Weighted average remaining lease terms in years - operating leases 2.75 3.75 4.75 Weighted average discount rate - operating leases 3.86% 3.86% 3.86% Maturity analysis for liabilities Total Undiscounted (in thousands) Cash Flows Discount rate at commencement 3.86% 2022 438 2023 447 2024 340 $ 1,225 Present value lease liability $ 1,159 Difference between undiscounted cash flows and discounted cash flows $ 66 |
Summary of income relating to lease payments and undiscounted cash flows | Income relating to lease payments: Year Ended (in thousands) December 31, 2021 December 31, 2020 December 31, 2019 Income from leases (1) $ 203,530 $ 242,209 $ 256,250 $ 203,530 $ 242,209 $ 256,250 Undiscounted Cash Flows Year ending (in thousands) December 31, 2022 100,269 2023 103,107 2024 97,792 2025 83,596 2026 70,718 2027 and thereafter 259,673 $ 715,155 (1) Amounts recognized from variable lease payments were $54,825, $61,310 and $64,421 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Dispositions of property (Table
Dispositions of property (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Dispositions of property | |
Summary of operating results for discontinued operations | For the Years Ended December 31, (in thousands) 2021 2020 2019 Rental revenue $ 38,958 $ 72,967 $ 74,626 Rental operating expenses (11,518) (20,651) (22,867) Real estate taxes and insurance (5,654) (11,165) (10,851) Depreciation and amortization (11,929) (26,552) (26,927) Income from dispositions $ 9,857 $ 14,599 $ 13,981 |
Organization (Details)
Organization (Details) | 12 Months Ended |
Dec. 31, 2021entityproperty | |
Organization | |
Number of REITs in which the entity holds non-controlling common stock interest | 2 |
Number of Sponsored REITs | 2 |
Number of promissory notes secured by mortgages on real estate owned by Sponsored REITs | 1 |
Properties | |
Number of properties | property | 24 |
FSP Investments LLC | |
Organization | |
Ownership interest (as a percent) | 100.00% |
FSP Property Management LLC | |
Organization | |
Ownership interest (as a percent) | 100.00% |
FSP Holdings LLC | |
Organization | |
Ownership interest (as a percent) | 100.00% |
FSP Protective TRS Corp. | |
Organization | |
Ownership interest (as a percent) | 100.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Basis, Estimates and Inv in non-consolidated REITs (Detail) | Dec. 31, 2021entity |
Significant Accounting Policies | |
Number of corporations organized to operate as real estate investment trusts (REITs) | 2 |
Number of REITs in which the entity holds non-controlling preferred stock interest | 2 |
Significant Accounting Polici_5
Significant Accounting Policies - Variable Interest Entities (Details) - VIE, Not Primary Beneficiary $ in Millions | Dec. 31, 2021USD ($) |
Variable interest entity | |
Maximum exposure to losses associated with VIE | $ 24.5 |
Prepaid expenses and other assets | |
Variable interest entity | |
Accrued interest and exit fee receivables | $ 0.5 |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Commercial buildings | |
Real Estate and Depreciation | |
Estimated useful life | 39 years |
Building improvements | Minimum | |
Real Estate and Depreciation | |
Estimated useful life | 15 years |
Building improvements | Maximum | |
Real Estate and Depreciation | |
Estimated useful life | 39 years |
Fixtures and equipment | Minimum | |
Real Estate and Depreciation | |
Estimated useful life | 3 years |
Fixtures and equipment | Maximum | |
Real Estate and Depreciation | |
Estimated useful life | 7 years |
Significant Accounting Polici_7
Significant Accounting Policies - Acquired Real Estate Leases and Amortization (Details) - Acquired in-place and above market real estate leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired real estate leases and amortization | |||
Amortization expense | $ 8,200 | $ 12,500 | $ 18,900 |
Estimated annual amortization for succeeding five years | |||
2022 | 3,882 | ||
2023 | 3,211 | ||
2024 | 2,870 | ||
2025 | 2,196 | ||
2026 | 1,789 | ||
2027 and thereafter | $ 986 | ||
Minimum | |||
Acquired real estate leases and amortization | |||
Term of lease | 12 months | ||
Maximum | |||
Acquired real estate leases and amortization | |||
Term of lease | 154 months |
Significant Accounting Polici_8
Significant Accounting Policies - Acquired Unfavorable Real Estate Leases and Amortization (Details) - Acquired unfavorable real estate leases - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Acquired Unfavorable Real Estate Leases and Amortization | |||
Amortization | $ 500 | $ 900 | $ 1,300 |
Estimated annual amortization for succeeding five years | |||
2022 | 161 | ||
2023 | 104 | ||
2024 | 93 | ||
2025 | 60 | ||
2026 | 31 | ||
2027 and thereafter | $ 79 | ||
Minimum | |||
Acquired Unfavorable Real Estate Leases and Amortization | |||
Term of lease | 64 months | ||
Maximum | |||
Acquired Unfavorable Real Estate Leases and Amortization | |||
Term of lease | 151 months |
Significant Accounting Polici_9
Significant Accounting Policies - Asset Held For Sale and Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Discontinued Operations | ||||
Time period within which sale or disposition of properties held for sale is probable | 1 year | |||
Cash, Cash Equivalents and Restricted Cash | ||||
Cash and cash equivalents | $ 34,308 | $ 2,650 | ||
Restricted cash | 6,443 | 1,500 | ||
Total cash, cash equivalents and restricted cash | $ 40,751 | $ 4,150 | $ 9,790 | $ 11,177 |
Significant Accounting Polic_10
Significant Accounting Policies - Rent Receivables (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tenant Rent Receivables and Straight-line Rent Receivable | |||
Period within which tenant rent receivables are expected to be collected | 1 year | ||
Straight-line rent receivable | $ 49 | $ 67.8 | $ 66.9 |
Significant Accounting Polic_11
Significant Accounting Policies - Concentration of Credit Risks (Details) | 12 Months Ended |
Dec. 31, 2021USD ($)itementity | |
Concentration of Credit Risks | |
Number of banks in which the entity maintains cash balances | 2 |
Number of interest rate swap agreements | 3 |
Number of Sponsored REITs with which the related party mortgage loan receivable is held | entity | 1 |
Cash balances with financial institutions | Credit concentration risk | Minimum | |
Concentration of Credit Risks | |
Insurance limit provided by Federal Deposit Insurance Corporation | $ | $ 250,000 |
Annualized rental revenues | Single tenant rental revenues | Major tenants | |
Concentration of Credit Risks | |
Percentage of annualized rental revenues required for qualification as major tenant | 10.00% |
Significant Accounting Polic_12
Significant Accounting Policies - Deferred Leasing Commissions and Revenue Recognition (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)itemshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Deferred Leasing Commissions | |||
Amortization expense of deferred leasing commissions | $ 10,700 | $ 9,600 | $ 9,900 |
Estimated annual amortization of deferred leasing commissions for the succeeding five years | |||
2022 | 6,504 | ||
2023 | 6,081 | ||
2024 | 5,299 | ||
2025 | 4,377 | ||
2026 | 3,586 | ||
2027 and thereafter | 12,464 | ||
Summary of rental revenue | |||
Income from leases | 148,705 | 180,899 | 191,828 |
Reimbursable expenses | 54,825 | 61,310 | 64,421 |
Straight line rent adjustments | 4,017 | 1,685 | 8,876 |
Amortization of favorable and unfavorable leases | 34 | 313 | 402 |
Total | $ 207,581 | $ 244,207 | $ 265,527 |
Segment Reporting | |||
Number of reporting segments | item | 1 | ||
Net Income Per Share | |||
Potential dilutive shares outstanding | shares | 0 | 0 | 0 |
Denominator used for calculating basic and diluted net income per share (in shares) | shares | 106,667,000 | 107,303,000 | 107,233,000 |
Derivative instruments | |||
Fair value hedges outstanding | $ 0 | ||
Rental | |||
Summary of rental revenue | |||
Total | $ 207,581 | $ 244,207 | $ 265,527 |
Related Party Transactions an_3
Related Party Transactions and Investments in Non-Consolidated Entities - Investment in Sponsored REITs (Details) | Dec. 31, 2021entity |
Related Party Transactions and Investments in Non-Consolidated Entities | |
Number of REITs in which the entity holds non-controlling common stock interest | 2 |
Number of REITs in which the entity holds non-controlling preferred stock interest | 2 |
Related Party Transactions an_4
Related Party Transactions and Investments in Non-Consolidated Entities - Investment in Sponsored REITs - Property Sold (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
FSP Energy Tower I Corp. | |
Investment in Sponsored REITs | |
Repayment of principal | $ 51 |
Related Party Transactions an_5
Related Party Transactions and Investments in Non-Consolidated Entities - Equity in losses of investment in non-consolidated REITs (Details) - USD ($) $ in Thousands | Oct. 06, 2021 | Dec. 31, 2007 | Dec. 31, 2021 | Dec. 31, 2019 |
Sponsored REITs | ||||
Equity in income (loss) | $ 421 | |||
Proceeds received from liquidating trust | $ 1,470 | |||
Distributions received from non-consolidated REITs | ||||
Distributions from non-consolidated REITs | 421 | |||
East Wacker | ||||
Sponsored REITs | ||||
Equity in income (loss) | $ 400 | 421 | ||
Preferred shares purchased | 965.75 | |||
Percentage of outstanding preferred shares purchased | 43.70% | |||
Distributions received from non-consolidated REITs | ||||
Distributions from non-consolidated REITs | $ 421 |
Related Party Transactions an_6
Related Party Transactions and Investments in Non-Consolidated Entities - Management fees and interest income from loans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Sponsored REITs | |||
Asset management fees, low end of range (as a percent) | 1.00% | ||
Asset management fees, high end of range (as a percent) | 5.00% | ||
Notice period for cancellation of applicable contracts | 30 days | ||
Type of revenue | Asset management fees | Asset management fees | Asset management fees |
Impairment of Sponsored REIT | $ 0 | ||
Asset management fees | |||
Sponsored REITs | |||
Revenue | $ 100,000 | $ 100,000 | $ 200,000 |
Related Party Transactions an_7
Related Party Transactions and Investments in Non-Consolidated Entities - Sponsored REIT Loans outstanding (Details) | Dec. 06, 2020 | Dec. 31, 2021USD ($)item | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 29, 2021USD ($) | Oct. 28, 2021USD ($) | Dec. 05, 2020 |
Sponsored REITs | |||||||
Maximum amount of loan | $ 24,000,000 | ||||||
Amount Drawn | 24,000,000 | $ 21,000,000 | $ 24,000,000 | $ 21,000,000 | |||
Interest income and fees from the Sponsored REIT Loans | 1,600,000 | 1,500,000 | $ 3,300,000 | ||||
Related party mortgage loan receivable | $ 24,000,000 | $ 21,000,000 | 24,000,000 | $ 21,000,000 | |||
Number of additional commitments to lend | item | 0 | ||||||
Sponsored REITs | |||||||
Sponsored REITs | |||||||
Term of sponsored REIT loan secured by mortgage, minimum | 1 year | ||||||
Term of sponsored REIT loan secured by mortgage, maximum | 3 years | ||||||
FSP Monument Circle LLC | |||||||
Sponsored REITs | |||||||
Additional loan amount | $ 3,000,000 | ||||||
Mortgage loan | Sponsored REITs | |||||||
Sponsored REITs | |||||||
Interest rate (as a percent) | 7.51% | 7.19% | |||||
Mortgage Loan On Real Estate, Extended Term | 2 years | ||||||
Mortgage loan | Sponsored REITs | Fair Value, Inputs, Level 3 [Member] | |||||||
Sponsored REITs | |||||||
Amount Drawn | $ 23,800,000 | ||||||
Related party mortgage loan receivable | 23,800,000 | ||||||
Mortgage loan | FSP Monument Circle LLC | |||||||
Sponsored REITs | |||||||
Maximum amount of loan | 24,000,000 | ||||||
Amount Drawn | $ 24,000,000 | ||||||
Interest rate (as a percent) | 7.51% | ||||||
Origination fee | $ 164,000 | ||||||
Exit fee | 38,000 | ||||||
Related party mortgage loan receivable | $ 24,000,000 |
Bank Note Payable, Term Note _3
Bank Note Payable, Term Note Payable and Private Placements (Details) | Oct. 25, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 04, 2021USD ($) | Dec. 24, 2020USD ($) | Oct. 24, 2017USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 23, 2020USD ($) | Mar. 29, 2019USD ($) | Mar. 07, 2019USD ($) | Sep. 27, 2018USD ($) | Aug. 02, 2018USD ($) | Oct. 18, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||||||
Repayments of unsecured debt | $ 445,000,000 | $ 50,000,000 | |||||||||||
Loss on extinguishment of debt | (901,000) | ||||||||||||
Unsecured term loan | 274,286,000 | 717,323,000 | |||||||||||
Portion of future LIBOR-based rate risk | 5,200,000 | ||||||||||||
Total available | $ 600,000,000 | ||||||||||||
Borrowings outstanding | $ 3,500,000 | ||||||||||||
Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 200,000,000 | ||||||||||||
Fixed charge coverage ratio | 1.50 | ||||||||||||
Series A Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 116,000,000 | ||||||||||||
Interest rate (as a percent) | 4.49% | ||||||||||||
Series B Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 84,000,000 | ||||||||||||
Interest rate (as a percent) | 4.76% | ||||||||||||
Maximum | Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Unsecured leverage ratio | 60.00% | ||||||||||||
Unsecured leverage ratio for significant acquisition | 65.00% | ||||||||||||
2012 Revolver | Federal Funds Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||||
2012 Revolver | One month LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||||||
BAML Revolver | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 0.30% | ||||||||||||
Weighted average interest rate (as a percent) | 1.33% | 1.65% | |||||||||||
Effective interest rate (as a percent) | 1.65% | ||||||||||||
Total available | $ 600,000,000 | ||||||||||||
Borrowings outstanding | $ 0 | $ 3,500,000 | |||||||||||
BAML Revolver | A- | A3 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee (as a percent) | 0.125% | ||||||||||||
BAML Revolver | BBB+ | Baa1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee (as a percent) | 0.15% | ||||||||||||
BAML Revolver | BBB | Baa2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee (as a percent) | 0.20% | ||||||||||||
BAML Revolver | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee (as a percent) | 0.25% | ||||||||||||
BAML Revolver | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Facility fee (as a percent) | 0.30% | ||||||||||||
BAML Revolver | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 1.55% | ||||||||||||
BAML Revolver | LIBOR | A- | A3 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.825% | ||||||||||||
BAML Revolver | LIBOR | BBB+ | Baa1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.875% | ||||||||||||
BAML Revolver | LIBOR | BBB | Baa2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||||||
BAML Revolver | LIBOR | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.20% | ||||||||||||
BAML Revolver | LIBOR | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.55% | ||||||||||||
BAML Revolver | Bank's base rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 0.55% | ||||||||||||
BAML Revolver | Bank's base rate | A- | A3 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.00% | ||||||||||||
BAML Revolver | Bank's base rate | BBB+ | Baa1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.00% | ||||||||||||
BAML Revolver | Bank's base rate | BBB | Baa2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.00% | ||||||||||||
BAML Revolver | Bank's base rate | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.20% | ||||||||||||
BAML Revolver | Bank's base rate | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.55% | ||||||||||||
BAML Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 400,000,000 | ||||||||||||
Repayments of unsecured debt | $ 200,000,000 | $ 90,000,000 | |||||||||||
Loss on extinguishment of debt | $ (700,000) | ||||||||||||
Unsecured term loan | $ 110,000,000 | ||||||||||||
Weighted average interest rate (as a percent) | 1.85% | ||||||||||||
Effective interest rate (as a percent) | 1.84% | ||||||||||||
Maximum borrowing capacity allowed by exercising an accordion feature | $ 500,000,000 | ||||||||||||
BAML Term Loan | Federal Funds Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||||
BAML Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 1.75% | ||||||||||||
Fixed rate (as a percent) | 1.12% | ||||||||||||
BAML Term Loan | LIBOR | A- | A3 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.90% | ||||||||||||
BAML Term Loan | LIBOR | BBB+ | Baa1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.95% | ||||||||||||
BAML Term Loan | LIBOR | BBB | Baa2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.10% | ||||||||||||
BAML Term Loan | LIBOR | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.35% | ||||||||||||
BAML Term Loan | LIBOR | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.75% | ||||||||||||
BAML Term Loan | Bank's base rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 0.75% | ||||||||||||
BAML Term Loan | Bank's base rate | A- | A3 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.00% | ||||||||||||
BAML Term Loan | Bank's base rate | BBB+ | Baa1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.00% | ||||||||||||
BAML Term Loan | Bank's base rate | BBB | Baa2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.10% | ||||||||||||
BAML Term Loan | Bank's base rate | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.35% | ||||||||||||
BAML Term Loan | Bank's base rate | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.75% | ||||||||||||
BAML Term Loan | One month LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||||||
JPM Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 150,000,000 | ||||||||||||
Repayments of unsecured debt | $ 100,000,000 | $ 50,000,000 | |||||||||||
Loss on extinguishment of debt | (100,000) | ||||||||||||
Unsecured term loan | $ 100,000,000 | ||||||||||||
Portion of future LIBOR-based rate risk | $ 100,000,000 | ||||||||||||
JPM Term Loan | Hedged portion | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payment to terminate interest rate swap | 1,200,000 | ||||||||||||
Portion of future LIBOR-based rate risk | $ 100,000,000 | $ 100,000,000 | |||||||||||
JPM Term Loan | LIBOR | Hedged portion | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed rate (as a percent) | 2.44% | ||||||||||||
BMO Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 220,000,000 | ||||||||||||
Additional loans allowed by exercising an accordion feature | $ 100,000,000 | ||||||||||||
Effective interest rate (as a percent) | 4.04% | ||||||||||||
BMO Term Loan | Federal Funds Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 0.50% | ||||||||||||
BMO Term Loan | LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 1.65% | ||||||||||||
Fixed rate (as a percent) | 2.32% | ||||||||||||
BMO Term Loan | LIBOR | Hedged portion | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Fixed rate (as a percent) | 2.39% | ||||||||||||
BMO Term Loan | LIBOR | A- | A3 | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 85.00% | ||||||||||||
BMO Term Loan | LIBOR | BBB+ | Baa1 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 90.00% | ||||||||||||
BMO Term Loan | LIBOR | BBB | Baa2 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 100.00% | ||||||||||||
BMO Term Loan | LIBOR | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 125.00% | ||||||||||||
BMO Term Loan | LIBOR | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 165.00% | ||||||||||||
BMO Term Loan | Bank's base rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate at period end (as a percent) | 0.65% | ||||||||||||
BMO Term Loan | Bank's base rate | BBB- | Baa3 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 25.00% | ||||||||||||
BMO Term Loan | Bank's base rate | BBB- | Baa3 | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 65.00% | ||||||||||||
BMO Term Loan | One month LIBOR | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on variable rate (as a percent) | 1.00% | ||||||||||||
Tranche A Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 55,000,000 | ||||||||||||
Loss on extinguishment of debt | (100,000) | ||||||||||||
Payment to terminate interest rate swap | $ 600,000 | ||||||||||||
Tranche B Term Loan | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Principal amount of loan | $ 165,000,000 |
Financial Instruments_ Deriva_3
Financial Instruments: Derivatives and Hedging (Details) - USD ($) $ in Thousands | Jun. 04, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Instruments: Derivatives and Hedging | |||
Hedged amount of portion of the future LIBOR-based rate risk | $ 5,200 | ||
Interest reclassified from accumulated other comprehensive income into interest expense | 1,900 | ||
Amount estimated to be reclassified into earnings within next 12 months | 2,500 | ||
JPM Term Loan | |||
Financial Instruments: Derivatives and Hedging | |||
Hedged amount of portion of the future LIBOR-based rate risk | 100,000 | ||
2017 Interest Rate Swap | Cash flow hedges | |||
Financial Instruments: Derivatives and Hedging | |||
Notional Value | $ 400,000 | ||
Strike Rate (as a percent) | 1.12% | ||
Fair Value | $ (2,947) | ||
2019 JPM Interest Rate Swap | |||
Financial Instruments: Derivatives and Hedging | |||
Payment to terminate interest rate swap | $ 1,200 | ||
2019 JPM Interest Rate Swap | Cash flow hedges | |||
Financial Instruments: Derivatives and Hedging | |||
Notional Value | $ 100,000 | ||
Strike Rate (as a percent) | 2.44% | ||
Fair Value | (2,102) | ||
2019 BMO Interest Rate Swap | |||
Financial Instruments: Derivatives and Hedging | |||
Payment to terminate interest rate swap | 600 | ||
2019 BMO Interest Rate Swap | Cash flow hedges | |||
Financial Instruments: Derivatives and Hedging | |||
Notional Value | $ 165,000 | $ 165,000 | |
Strike Rate (as a percent) | 2.39% | ||
Fair Value | $ (5,239) | $ (12,262) |
Financial Instruments_ Deriva_4
Financial Instruments: Derivatives and Hedging - Interest Rate Swaps (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | $ 32,273 | $ 36,026 | $ 36,757 |
Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | 32,273 | 36,026 | 36,757 |
Interest Rate Swap | Amounts of previously recorded gain/(loss) reclassified from OCI into Interest Expense | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | (8,286) | (7,751) | 4,328 |
Interest Rate Swap | Amounts of gain (loss) recognized in OCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total amount of Interest Expense presented in the consolidated statements of operations | $ 3,786 | $ (20,380) | $ (15,119) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 04, 2020USD ($) | Dec. 31, 2021USD ($)itemshares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares | |
Stockholders' Equity | ||||
Common Stock, Shares, Outstanding | 103,998,520 | 107,328,199 | ||
General and Administrative Expense [Member] | ||||
Equity-Based Compensation | ||||
Compensation cost | $ | $ 337,000 | |||
2002 Stock Incentive Plan | ||||
Equity-Based Compensation | ||||
Maximum number of shares provided for grant under equity-based incentive compensation plan | 2,000,000 | |||
Number of vesting requirements | item | 0 | |||
Number of shares available for grant under the plan, Beginning | 1,847,384 | 1,906,382 | 1,944,428 | |
Shares Granted | (66,564) | (58,998) | (38,046) | |
Number of shares available for grant under the plan, Ending | 1,780,820 | 1,847,384 | 1,906,382 | |
Compensation Cost, Beginning | $ | $ 675,000 | $ 337,500 | ||
Compensation cost | $ | 337,500 | 337,500 | $ 337,500 | |
Compensation Cost, Ending | $ | $ 1,012,500 | $ 675,000 | $ 337,500 |
Stockholders' Equity - Repurcha
Stockholders' Equity - Repurchase of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2021 | Jun. 23, 2021 | |
Stockholders' Equity | |||
Shares authorized to be repurchased | $ 50,000 | ||
Average cost per share of repurchased shares (in dollars per share) | $ 5.37 | ||
Total number of shares repurchased, beginning (in shares) | 1,017,498 | ||
Shares repurchased (in shares) | 3,396,243 | 3,396,243 | |
Total number of shares repurchased, ending (in shares) | 4,413,741 | 4,413,741 | |
Amount of stock repurchased, beginning | $ 18,775 | ||
Aggregate cost of shares repurchased | $ 18,200 | 18,244 | |
Amount of stock repurchased, ending | $ 37,019 | $ 37,019 |
Federal Income Tax Reporting (D
Federal Income Tax Reporting (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Federal Income Tax Reporting | ||||
Maximum ownership as a percentage of the voting power or value of the securities of each issuer other than REIT or "TRS" | 10.00% | |||
Maximum ownership of securities in all TRS (as a percent) | 20.00% | 25.00% | ||
Maximum ownership of securities in all TRS when considered together with other non-real estate assets (as a percent) | 25.00% | |||
Gross amount of NOL of TRS | $ 4,800 | $ 4,600 | ||
Period of statute of limitations applicable to the entity's income tax returns | 3 years | |||
Net operating losses | ||||
NOLs expiration period | 20 years | |||
NOLs expired in the period | $ 100 | |||
NOLs expected to be used in the next fiscal period | 11,800 | |||
Reversal of valuation allowance | 11,800 | |||
Gross amount of NOLs available to company | 1,100 | 13,000 | ||
Income Tax Expense | ||||
Revised Texas Franchise Tax | 234 | 250 | $ 394 | |
Other Taxes | 404 | (125) | ||
Tax expense | 638 | 250 | $ 269 | |
Deferred income taxes | 0 | |||
Real estate assets net tax basis more (less) than book basis | $ 153,700 | $ 253,000 |
Federal Income Tax Reporting -
Federal Income Tax Reporting - Tax Components of Distributions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax components of the Company's common distributions paid per share | |||
Ordinary income (in dollars per share) | $ 0.28 | $ 0.25 | |
Capital gain (in dollars per share) | $ 0.68 | 0.06 | |
Return of capital (in dollars per share) | 0.02 | 0.11 | |
Total (in dollars per share) | $ 0.68 | $ 0.36 | $ 0.36 |
Ordinary income (as a percent) | 77.51% | 69.96% | |
Capital gain (as a percent) | 100.00% | 16.72% | |
Return of capital (as a percent) | 5.77% | 30.04% | |
Total (as a percent) | 100.00% | 100.00% | 100.00% |
Common Stock Dividends Per Share Cash Paid Qualified Distribution | $ 0.009 | ||
Qualified distribution as a percentage of total distribution | 2.52% |
Leases - Lease Costs and Maturi
Leases - Lease Costs and Maturity Analysis for Liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Option | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Leases | |||
Right-of-use asset | $ 1,100 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Prepaid Expense and Other Assets | ||
Option to extend the terms | true | ||
Number of options to extend | Option | 1 | ||
Extension term | 5 years | ||
Lease Costs | |||
Operating lease cost | $ 419 | $ 419 | $ 419 |
Lease cost | 419 | 419 | 419 |
Cash paid for amounts included in the measurement of lease liabilities | $ 429 | $ 421 | $ 412 |
Weighted average remaining lease terms in years - operating leases | 2 years 9 months | 3 years 9 months | 4 years 9 months |
Weighted average discount rate - operating leases | 3.86% | 3.86% | 3.86% |
Maturity analysis for liabilities | |||
Discount rate at commencement | 3.86% | ||
2022 | $ 438 | ||
2023 | 447 | ||
2024 | 340 | ||
Total undiscounted cash flows | 1,225 | ||
Present value lease liability | 1,159 | $ 1,536 | |
Difference between undiscounted cash flows and discounted cash flows | $ 66 |
Leases - Income Relating to Lea
Leases - Income Relating to Lease Payments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income relating to lease payments: | |||
Income from leases | $ 203,530 | $ 242,209 | $ 256,250 |
Undiscounted Cash Flows | |||
2022 | 100,269 | ||
2023 | 103,107 | ||
2024 | 97,792 | ||
2025 | 83,596 | ||
2026 | 70,718 | ||
2027 and thereafter | 259,673 | ||
Income relating to lease payments | 715,155 | ||
Variable lease payments | $ 54,825 | $ 61,310 | $ 64,421 |
Retirement Plan (Details)
Retirement Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Plan | |||
Maximum employee compensation to be deferred per year | $ 17,000 | ||
Maximum employer matching contribution as a percentage of annual compensation | 3.00% | ||
Maximum employee salary that the employer will match | $ 200,000 | ||
Company's total contribution under 401 (k) plan | $ 100,000 | $ 100,000 | $ 200,000 |
Dispositions of Property (Detai
Dispositions of Property (Details) $ in Thousands | Nov. 16, 2021USD ($)property | Oct. 22, 2021USD ($) | Sep. 23, 2021USD ($)property | Aug. 31, 2021USD ($) | Jun. 29, 2021USD ($) | May 27, 2021USD ($)property | Dec. 23, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Dispositions of properties | ||||||||||
Gain (loss) on sale of property | $ 113,134 | $ 41,928 | ||||||||
Office Properties in Atlanta, Georgia | ||||||||||
Dispositions of properties | ||||||||||
Number of properties sold | property | 3 | |||||||||
Gain (loss) on sale of property | $ 86,800 | $ 22,800 | ||||||||
Sale price | $ 223,900 | $ 219,500 | ||||||||
Office Property in Dulles, Virginia | ||||||||||
Dispositions of properties | ||||||||||
Gain (loss) on sale of property | $ (2,100) | |||||||||
Sale price | $ 17,300 | |||||||||
Office property in Indianapolis, Indiana | ||||||||||
Dispositions of properties | ||||||||||
Gain (loss) on sale of property | $ (1,700) | |||||||||
Sale price | $ 35,000 | |||||||||
Office properties in Chesterfield, MO | ||||||||||
Dispositions of properties | ||||||||||
Number of properties sold | property | 2 | |||||||||
Gain (loss) on sale of property | $ 10,300 | |||||||||
Sale price | $ 67,000 | |||||||||
Office property in Chantilly, VA | ||||||||||
Dispositions of properties | ||||||||||
Number of properties sold | property | 2 | |||||||||
Gain (loss) on sale of property | $ (2,900) | |||||||||
Sale price | $ 40,000 | |||||||||
Office Property In Durham North California | ||||||||||
Dispositions of properties | ||||||||||
Gain (loss) on sale of property | $ 41,900 | |||||||||
Sale price | $ 89,700 | |||||||||
Disposal group disposed of by sale, not classified as discontinued operations | ||||||||||
Operating results for discontinued operations: | ||||||||||
Rental revenue | 38,958 | 72,967 | $ 74,626 | |||||||
Rental operating expenses | (11,518) | (20,651) | (22,867) | |||||||
Real estate taxes and insurance | (5,654) | (11,165) | (10,851) | |||||||
Depreciation and amortization | (11,929) | (26,552) | (26,927) | |||||||
Net income (loss) from discontinued operations | $ 9,857 | $ 14,599 | $ 13,981 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 14, 2022 | Jan. 12, 2022 | Feb. 10, 2022 | Jan. 10, 2022 | Dec. 31, 2021 |
Subsequent Events | |||||
Total available | $ 600 | ||||
Subsequent event | |||||
Subsequent Events | |||||
Special dividend (in dollars per share) | $ 0.32 | ||||
BofA Revolver | |||||
Subsequent Events | |||||
Total available | $ 600 | ||||
BofA Revolver | Subsequent event | |||||
Subsequent Events | |||||
Total available | $ 237.5 | $ 217.5 | |||
Maximum borrowing capacity allowed by exercising an accordion feature | $ 750 | ||||
Increase in maximum borrowing capacity after exercising accordion feature | $ 20 | ||||
Cash distribution declared | Subsequent event | |||||
Subsequent Events | |||||
Cash dividend declared per share (in dollars per share) | $ 0.09 |
Schedule II Valuation and qua_2
Schedule II Valuation and qualifying accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for doubtful accounts - Tenant rent receivables | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | $ 505,000 | $ 300,000 | $ 200,000 |
Additions (Decreases) charged to costs and expenses | 157,000 | 340,000 | 213,000 |
Deductions | (129,000) | (135,000) | (113,000) |
Balance at end of year | $ 533,000 | 505,000 | 300,000 |
Allowance for doubtful accounts - Straight-line rent receivable | |||
Movement in valuation and qualifying accounts | |||
Balance at beginning of year | 50,000 | 50,000 | |
Deductions | $ (50,000) | ||
Balance at end of year | $ 50,000 |
SCHEDULE III REAL ESTATE AND _2
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Encumbrances | $ 0 | |||
Accumulated Depreciation | 424,487,000 | $ 538,717,000 | $ 490,697,000 | $ 432,579,000 |
Aggregate cost for Federal Income Tax purposes | 1,773,262 | |||
Real Estate Excluding Assets Held For Sale | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | 147,342,000 | |||
Initial cost of Buildings Improvements and Equipment | 1,134,057,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 334,058,000 | |||
Historical Cost of Land | 146,848,000 | |||
Historical Cost of Buildings Improvements and Equipment | 1,468,609,000 | |||
Total | 1,615,457,000 | |||
Accumulated Depreciation | 424,487,000 | |||
Total Costs, Net of Accumulated Depreciation | 1,190,970,000 | |||
Forest Park, Charlotte, NC | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | 1,559,000 | |||
Initial cost of Buildings Improvements and Equipment | 5,672,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 3,051,000 | |||
Historical Cost of Land | 1,559,000 | |||
Historical Cost of Buildings Improvements and Equipment | 8,723,000 | |||
Total | 10,282,000 | |||
Accumulated Depreciation | 2,576,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 7,706,000 | |||
Forest Park, Charlotte, NC | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Forest Park, Charlotte, NC | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Northwest Point, Elk Grove Village, IL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,914,000 | |||
Initial cost of Buildings Improvements and Equipment | 26,295,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 13,023,000 | |||
Historical Cost of Land | 2,914,000 | |||
Historical Cost of Buildings Improvements and Equipment | 39,318,000 | |||
Total | 42,232,000 | |||
Accumulated Depreciation | 20,586,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 21,646,000 | |||
Northwest Point, Elk Grove Village, IL | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Northwest Point, Elk Grove Village, IL | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Park Ten, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 1,061,000 | |||
Initial cost of Buildings Improvements and Equipment | 21,303,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,082,000 | |||
Historical Cost of Land | 567,000 | |||
Historical Cost of Buildings Improvements and Equipment | 28,879,000 | |||
Total | 29,446,000 | |||
Accumulated Depreciation | 14,214,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 15,232,000 | |||
Park Ten, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Park Ten, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Addison, Addison, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,325,000 | |||
Initial cost of Buildings Improvements and Equipment | 48,040,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 12,495,000 | |||
Historical Cost of Land | 4,325,000 | |||
Historical Cost of Buildings Improvements and Equipment | 60,535,000 | |||
Total | 64,860,000 | |||
Accumulated Depreciation | 25,772,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 39,088,000 | |||
Addison, Addison, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Addison, Addison, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Collins, Richardson, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,000,000 | |||
Initial cost of Buildings Improvements and Equipment | 42,598,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 8,804,000 | |||
Historical Cost of Land | 4,000,000 | |||
Historical Cost of Buildings Improvements and Equipment | 51,402,000 | |||
Total | 55,402,000 | |||
Accumulated Depreciation | 24,755,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 30,647,000 | |||
Collins, Richardson, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Collins, Richardson, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Greenwood, Englewood, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,100,000 | |||
Initial cost of Buildings Improvements and Equipment | 30,201,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 12,530,000 | |||
Historical Cost of Land | 3,100,000 | |||
Historical Cost of Buildings Improvements and Equipment | 42,731,000 | |||
Total | 45,831,000 | |||
Accumulated Depreciation | 20,295,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 25,536,000 | |||
Greenwood, Englewood, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Greenwood, Englewood, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Innsbrook, Glenn Allen, VA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 5,000,000 | |||
Initial cost of Buildings Improvements and Equipment | 40,216,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 9,002,000 | |||
Historical Cost of Land | 5,000,000 | |||
Historical Cost of Buildings Improvements and Equipment | 49,218,000 | |||
Total | 54,218,000 | |||
Accumulated Depreciation | 20,578,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 33,640,000 | |||
Innsbrook, Glenn Allen, VA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Innsbrook, Glenn Allen, VA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
380 Interlocken, Bloomfield, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 8,275,000 | |||
Initial cost of Buildings Improvements and Equipment | 34,462,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 13,194,000 | |||
Historical Cost of Land | 8,275,000 | |||
Historical Cost of Buildings Improvements and Equipment | 47,656,000 | |||
Total | 55,931,000 | |||
Accumulated Depreciation | 19,130,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 36,801,000 | |||
380 Interlocken, Bloomfield, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
380 Interlocken, Bloomfield, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Blue Lagoon, Miami, FL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 6,306,000 | |||
Initial cost of Buildings Improvements and Equipment | 46,124,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 33,388,000 | |||
Historical Cost of Land | 6,306,000 | |||
Historical Cost of Buildings Improvements and Equipment | 79,512,000 | |||
Total | 85,818,000 | |||
Accumulated Depreciation | 16,927,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 68,891,000 | |||
Blue Lagoon, Miami, FL | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Blue Lagoon, Miami, FL | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Eldridge Green, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,900,000 | |||
Initial cost of Buildings Improvements and Equipment | 43,791,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 5,923,000 | |||
Historical Cost of Land | 3,900,000 | |||
Historical Cost of Buildings Improvements and Equipment | 49,714,000 | |||
Total | 53,614,000 | |||
Accumulated Depreciation | 21,202,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 32,412,000 | |||
Eldridge Green, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Eldridge Green, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Liberty Plaza, Addison, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,374,000 | |||
Initial cost of Buildings Improvements and Equipment | 21,146,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 10,542,000 | |||
Historical Cost of Land | 4,374,000 | |||
Historical Cost of Buildings Improvements and Equipment | 31,688,000 | |||
Total | 36,062,000 | |||
Accumulated Depreciation | 13,172,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 22,890,000 | |||
Liberty Plaza, Addison, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Liberty Plaza, Addison, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
FSP 390 Interlocken, Broomfield, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 7,013,000 | |||
Initial cost of Buildings Improvements and Equipment | 37,751,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 14,399,000 | |||
Historical Cost of Land | 7,013,000 | |||
Historical Cost of Buildings Improvements and Equipment | 52,150,000 | |||
Total | 59,163,000 | |||
Accumulated Depreciation | 20,579,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 38,584,000 | |||
FSP 390 Interlocken, Broomfield, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
FSP 390 Interlocken, Broomfield, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Park Ten II, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 1,300,000 | |||
Initial cost of Buildings Improvements and Equipment | 31,712,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 7,245,000 | |||
Historical Cost of Land | 1,300,000 | |||
Historical Cost of Buildings Improvements and Equipment | 38,957,000 | |||
Total | 40,257,000 | |||
Accumulated Depreciation | 13,458,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 26,799,000 | |||
Park Ten II, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Park Ten II, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
121 South Eight Street, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,444,000 | |||
Initial cost of Buildings Improvements and Equipment | 15,214,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 28,449,000 | |||
Historical Cost of Land | 4,444,000 | |||
Historical Cost of Buildings Improvements and Equipment | 43,663,000 | |||
Total | 48,107,000 | |||
Accumulated Depreciation | 12,968,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 35,139,000 | |||
121 South Eight Street, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
121 South Eight Street, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
801 Marquette Avenue South, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,184,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 27,798,000 | |||
Historical Cost of Land | 4,184,000 | |||
Historical Cost of Buildings Improvements and Equipment | 27,798,000 | |||
Total | 31,982,000 | |||
Accumulated Depreciation | 2,889,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 29,093,000 | |||
801 Marquette Avenue South, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
801 Marquette Avenue South, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
909 Davis, Evanston, IL | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 4,912,000 | |||
Initial cost of Buildings Improvements and Equipment | 18,229,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 8,235,000 | |||
Historical Cost of Land | 4,912,000 | |||
Historical Cost of Buildings Improvements and Equipment | 26,464,000 | |||
Total | 31,376,000 | |||
Accumulated Depreciation | 8,145,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 23,231,000 | |||
909 Davis, Evanston, IL | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
909 Davis, Evanston, IL | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Legacy Tennyson Center, Plano, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 3,067,000 | |||
Initial cost of Buildings Improvements and Equipment | 22,064,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,046,000 | |||
Historical Cost of Land | 3,067,000 | |||
Historical Cost of Buildings Improvements and Equipment | 26,110,000 | |||
Total | 29,177,000 | |||
Accumulated Depreciation | 7,756,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 21,421,000 | |||
Legacy Tennyson Center, Plano, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Legacy Tennyson Center, Plano, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
One Legacy Circle, Plano, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 2,590,000 | |||
Initial cost of Buildings Improvements and Equipment | 36,608,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,822,000 | |||
Historical Cost of Land | 2,590,000 | |||
Historical Cost of Buildings Improvements and Equipment | 41,430,000 | |||
Total | 44,020,000 | |||
Accumulated Depreciation | 11,945,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 32,075,000 | |||
One Legacy Circle, Plano, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
One Legacy Circle, Plano, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Westchase I & II, Houston, TX | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 8,491,000 | |||
Initial cost of Buildings Improvements and Equipment | 121,508,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 17,044,000 | |||
Historical Cost of Land | 8,491,000 | |||
Historical Cost of Buildings Improvements and Equipment | 138,552,000 | |||
Total | 147,043,000 | |||
Accumulated Depreciation | 33,721,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 113,322,000 | |||
Westchase I & II, Houston, TX | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Westchase I & II, Houston, TX | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
1999 Broadway, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 16,334,000 | |||
Initial cost of Buildings Improvements and Equipment | 137,726,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 39,108,000 | |||
Historical Cost of Land | 16,334,000 | |||
Historical Cost of Buildings Improvements and Equipment | 176,834,000 | |||
Total | 193,168,000 | |||
Accumulated Depreciation | 40,105,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 153,063,000 | |||
1999 Broadway, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
1999 Broadway, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
1001 17th Street, CO | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 17,413,000 | |||
Initial cost of Buildings Improvements and Equipment | 165,058,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 24,286,000 | |||
Historical Cost of Land | 17,413,000 | |||
Historical Cost of Buildings Improvements and Equipment | 189,344,000 | |||
Total | 206,757,000 | |||
Accumulated Depreciation | 41,367,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 165,390,000 | |||
1001 17th Street, CO | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
1001 17th Street, CO | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Plaza Seven, Minneapolis, MN | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 6,604,000 | |||
Initial cost of Buildings Improvements and Equipment | 54,240,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 11,468,000 | |||
Historical Cost of Land | 6,604,000 | |||
Historical Cost of Buildings Improvements and Equipment | 65,708,000 | |||
Total | 72,312,000 | |||
Accumulated Depreciation | 11,471,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 60,841,000 | |||
Plaza Seven, Minneapolis, MN | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Plaza Seven, Minneapolis, MN | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
Pershing Plaza, Atlanta, GA | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 5,300,000 | |||
Initial cost of Buildings Improvements and Equipment | 34,158,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 4,119,000 | |||
Historical Cost of Land | 5,300,000 | |||
Historical Cost of Buildings Improvements and Equipment | 38,277,000 | |||
Total | 43,577,000 | |||
Accumulated Depreciation | 5,147,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 38,430,000 | |||
Pershing Plaza, Atlanta, GA | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
Pershing Plaza, Atlanta, GA | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years | |||
600 17th Street, Denver, Co | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Initial cost of Land | $ 20,876,000 | |||
Initial cost of Buildings Improvements and Equipment | 99,941,000 | |||
Costs Capitalized (Disposals) Subsequent to Acquisition | 14,005,000 | |||
Historical Cost of Land | 20,876,000 | |||
Historical Cost of Buildings Improvements and Equipment | 113,946,000 | |||
Total | 134,822,000 | |||
Accumulated Depreciation | 15,729,000 | |||
Total Costs, Net of Accumulated Depreciation | $ 119,093,000 | |||
600 17th Street, Denver, Co | Minimum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 5 years | |||
600 17th Street, Denver, Co | Maximum | ||||
REAL ESTATE AND ACCUMULATED DEPRECIATION | ||||
Depreciable Life Years | 39 years |
SCHEDULE III REAL ESTATE AND _3
SCHEDULE III REAL ESTATE AND ACCUMULATED DEPRECIATION - Changes in real estate investments and accumulated depreciation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Real estate investments, at cost: | |||
Balance, beginning of year | $ 2,140,733 | $ 2,127,907 | $ 2,058,352 |
Improvements | 60,910 | 75,472 | 74,324 |
Dispositions | (586,186) | (62,646) | (4,769) |
Balance, end of year | 1,615,457 | 2,140,733 | 2,127,907 |
Accumulated depreciation: | |||
Balance, beginning of year | 538,717 | 490,697 | 432,579 |
Depreciation | 60,080 | 67,001 | 62,887 |
Dispositions | (174,310) | (18,981) | (4,769) |
Balance, end of year | $ 424,487 | $ 538,717 | $ 490,697 |