FSP - Earnings call 3 2023 | Franklin Street Properties Corp.

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Operator

Good morning, and welcome to the Franklin Street Properties Corp.

Third Quarter 2023 Earnings Call. [Operator Instructions] I would now like to turn the call over to Mr. Scott Carter, General Counsel. Please go ahead, sir.

Scott Carter

to Street welcome XXXX Third and Call. Earnings morning, the Properties Franklin Quarter Good

morning Carter, Carter, are Officer; this Management. John me Joining George FSP of our Chief Officer; Property Financial Donahue, and President John our Chief Officer; President Jeff our Investment and Demeritt, Executive Chief

for Also plans may Management. provisions company Will that Please the the Executive joining various are and make Presidents statements Vice remarks of of Securities and this Daley morning we XXXX. about under Litigation note expectations, future of prospects me that forward-looking purposes constitute Toby Friend, FSP Private may Act the Property Reform for harbor safe

results annual ended December as quarterly XX-Q the XX-K discussed Actual these in reports year from of report by for Factors Form which the including SEC. indicated forward-looking with a are of section by on those differ Risk statements amended our the on Form on of file our may various materially XX, those result important as XXXX, all factors,

GAAP Relations financial represent do at to From on the to any should available forward-looking upon FFO. estimates it the of of while representing measures as our call, press section this income November addition, Reconciliations to today, other forward-looking these Any date release, of website subsequent in views obligation to or Operations yesterday's or Funds only non-GAAP expectations is FFO during may relied refer the XXXX the are today. At Investor may www.fspreit.com. we any which times of contained to and net these disclaims as company's forward-looking X, specifically elect update not statements, be so. statements company company's In as statements

Demeritt. over Now to John? I'll turn the call John

John Demeritt

thoughts. everyone. quarter And his Thank and overview to our good I'll of a morning, third brief George afterward, pass for results. call I'm going the you, give to Scott,

can and Scott XX-Q, As today earnings which, release a package our mentioned, will be our website. comments to found supplemental the reminder, our on as refer

million We the million per of or From of 'XX. a about share per third FFO X for share for share quarter reported months reported $X.XX third 'XX ended 'XX million of for loss the Operations a ended XX, for and $X.X we per of of Funds million per about GAAP and quarter net or $XX.X net On FFO $XX of about the basis, or months or or share September $X.XX $X.XX year-to-date X the about GAAP $XX.X September 'XX. $X.XX loss a

George? total $XX XX, drawn debt September which on at million about had of We the revolver, had As 'XX, $XX.X outstanding, had million million George. XX, of including $XXX our end in $XX about we million the available there to hand time. of turn of about was the million I'll call on so September over $XX.X September. at at that, liquidity With total cash

George Carter

Thank And welcome Franklin Properties you, again, XXXX Street Call. John. to Earnings Third Quarter

fourth XXXX estate begins, to the value underlying the stock of does common accurately the our assets. of reflect quarter current believe price As our that real of not we continue

quarter tested that generally been square been consistent feet, have one in anticipated Park of to very has an Forest of one which our foot of about, a help which second of sale million will of value it per vacant dispositions continued Legacy, of to review call, approximately for We the to to, the property has sales foot debt believe metric about said specific to this we completed X.X metric be XXXX, valid price price the is approximately is are square plan, that believe this price other million now that and square million actually proceeds at when had property the representing for that equates than intend any with is December of only future, $XXX sold are term last potential per potential used third the average proposition per number quarter foot to of give we from approximately one we we there shorter while will portfolio. Last potential challenged at has square Franklin price among and to price. per metrics average debt dispositions foot calculation what view property primarily use To price an loan-to-value increase space. We XXXX, leverage during still remaining square can would two, risk. have And we and individual earnings square valid by representing particularly interesting number try a price occur for an feet, in considering $XXX. My property talked to we and continue to of started slightly as per is FSP, property square assurances valuation increase to we is and leasing relevant we foot determine likely sell On that interesting quarter's the one quarter, that $XXX which that a point reached; market. pursue One per year other value and and properties select a metric is and metrics disposition of to that property believe FSP. Taking office today foot those Street seek to one continuing this foot we our $XXX shareholder the balance as and Properties. measure commercial of cannot to metric fairly strive And really per property while to value current where investment million properties average $XXX for square foot future in X.XX relating things, occupancy post value property, one, update sold since average our approximately to average reduction. per of believe been square and square is I FSP's higher the equated about price

feet You have property of level end third of to approximate which $XX million foot. our equates million debt X.X portfolio, debt square of $XXX of square against about per quarter about approximately

the believe foot FSP property value, of quarter third remaining reflect a would to square square at portfolio an relationship. about you in loan-to-value $XXX continue per of X.X feet total average FSP the the If then reflect of end million of the debt would XX%

proceeds, reduction, reduction. XX% continued further the likely debt, If then to during has majority metric for we disposition to lower of primarily fall from intend proceeds further proceeds with use sale third of increasing of office repaid additional to property program quality our the in you term the market, longer which for the the quarter third One this have challenged recent the property to of Since disposition XX%. Again, of completed loan-to-value believe dispositions, property reduced beginning post and gross consider we our from stakeholders year, anticipated the is further we million proceeds approximately of through FSP $XX currently all percentage primarily those continued sales debt while potential Legacy of continue risk and XXXX, balance this debt significantly used for quarter than investment.

from and One we to billion. amount to are of total further Legacy its million, believe the down XX% of former our $X likely of repayment recent $XXX $XXX continue sale we and down to debt approximately future this XX% With maximum million dispositions anticipated year, between

Now for Property John on call will Donahue, our color I over President more FSP the John? Corp. leasing turn activity, of to Management

John Donahue

the compared during the to the third occupancy at multiple quarter. portfolio quarter end and during end was approximately the Thank of leased departures of and leased attributable of portfolio second year. Economic Good as owned third The quarter at the dispositions property everyone. was the second the leased XX.X% of The end Denver was of XX.X% of approximately Minneapolis and to was X secondarily morning, months you, XX.X% to at of the first the directly XX.X% the George. XXXX. quarter. primarily third at The in decrease attributable the decrease to tenant directly owned year-end XX.X% compared to expirations quarter due FSP primarily lease end the

FSP and tenant for XXX,XXX square The XXXX XXX,XXX leases. along surpassed new leasing calendar total months the feet which XXX,XXX already included X during approximately of finalized expansions results square XXXX, have square of figures calendar leasing feet with the renewals of of XXXX. leasing approximately total first feet from

of markets, momentum XXX,XXX picking demand prospects the trend new including square than of identified more and including respective has steadily FSP up grown has XXX,XXX positive during feet suburban square the as has feet approximately been significant shortlists. The have Richmond. tenant on in FSP most Dallas their that pipeline been prospective to New prospects several months tenants Houston, of assets last

tours scheduled FSP's remainder owned XXXX has activity which XX,XXX in recent for We square an are tours expirations also approximately Downtown approximately directly well. encouraged increase of witnessed in and of which X.X% Denver, represents the Lease calendar total feet, portfolio. by as

work to existing includes you. continues engaged square total potential for approximately that to renewals FSP with over expansions. XX,XXX are Thank XX,XXX also feet and XXX,XXX feet that of square tenants

Jeff turn to now over will I it Carter.

Jeffrey Carter

value will reflected Thank well FSP's to continued price. discussing you, FSP further is for not share morning, and properties our on we selling being selectively as good at unlock John, believe accurately to shareholders in I be as indebtedness everyone. reduce current focus in our that order

$X.X Park single-story flex North million. in FSP last as third August approximately remaining the on known quarter, X, During sold for our Forest building Charlotte, Carolina, office

the of for third gross. FSP Circle, approximately the close the million $XX sale Legacy Greater completed after Additionally, One Dallas, XX, October of on quarter,

this under combined that agreements, hard closing properties and Looking currently year-end, of million ahead, informed FSP still period. has X appropriate. and of these keep FSP the market pending with $XXX sale in an dispositions diligence average At anticipates due being approximately square purchase representing approximately we'll its have sales $XXX. X time, and price respective X pending in to gross as nonrefundable proceeds prior respective the on reflect deposits per a foot dispositions

of proceeds described, the pending will just of to at that towards primarily million $XXX received Circle approximately sale from the gross added Assuming of successful million One direct we closings that Legacy the proceeds there $XXX to for intend be million in FSP. reducing gross further are indebtedness dispositions approximately total $XX a on

class for buyers but portfolios, longer-term than towards over been value for deep the respect groups. to office and responsible we This FSP. The rates large historically sales of value properties to buyers when with primarily to reliably and in asset unexpectedly, rising constrained purchases. FSP proposition real office estate in opportunities, buyers lending of in are and the an ability equity the financings a current challenging, both such in have reduced finding post-COVID bulk well-located as difficult our successful capital continues, from are growth indeed reported and so of past the have market looking have investors properties. fewer and liquidity office to real will see the recent remain and in currently continue for date procure property who also As seek particular, interest are quarters, remains reduction key office have not buyers conditions with we however, investors here eye to to at environment, the environment, debt and and focus the prospective to distressed and the facilitate the combined high-quality and interest there office closing property and needed are

as keeping our that market reasons individual specific the believe and sharing we pending stakeholders environment, the when dispositions, informed in we of be interest all to on competitive we challenged not in market currently to this appropriate. will information look of For and forward be

And you call this [ like our time, Briana to And with ]? I call open listening at today. any to now we would the conference to thank questions. up earnings that, for

Operator

Janney. first Your with Instructions] from question [Operator Steven comes Dumanski

Steven Dumanski

distributing the a if plan the on as you would dividend potential result dispositions amount? XXXX? what special Do be during a And of so,

John Demeritt

This to point. any distribution make There Demeritt, special this is CFO. at isn't John a plan

So question. I hope that answers the

George Carter

This George. year. we not, requirement REIT believe, distribution, trigger for is we this this that rule Steven, Yes, will

a allocate And and to REIT those repayment. be will towards debts so maintain we want to under proceeds not ] rules dividend, we distribute debt required to [ REIT

Steven Dumanski

X the price also per guess I range is the mentioned provide on the projected that Could square just you it. I it call? in within more dispositions? And foot appreciate you potential previously please insight perhaps

Jeffrey Carter

this Yes, Carter. is question. Jeff I the appreciate

remarks, average approximately reflect and my which dispositions, in foot. total X square $XXX an proceeds per mentioned pending million in sales I there's currently approximately gross of they As $XXX the

Steven Dumanski

And just helpful. last very That's one. Excellent. one

wrong, I correct lease, [indiscernible] progressed the -- Corporation, on term. a conversations and How approximately with please its if guess, towards I'm Regarding renewal? EMC have me potential left

John Donahue

engaged really It's about how telling occupying markets and John is Donahue. we we'll that anything posted subtenant a we of the progresses. There space but a keep portion are on public conversations, haven't the and that been the

Operator

time, over call closing will turn George Seeing the no for back I remarks. this any Carter to further at questions

George Carter

], Franklin finishing Briana quarter's you, and look everyone, look We forward great Thank for turning Thank next very day. earnings you, to to the have [ to a call. and Street and in forward you year-end year, call. thank we the much,

Operator

This concludes today's conference call.

may You now disconnect.

Franklin Street Properties (FSP) 8 Nov 232023 Q3 Earnings call transcript