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Franklin Street Properties Corp. Announces Fourth Quarter & Year End 2012 Results

Feb 19 2013 12:00AM

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WAKEFIELD, MA -- (Marketwire) -- 02/19/13 -- Franklin Street Properties Corp. (the "Company," "FSP," "we" or "our") (NYSE MKT: FSP), an investment firm specializing in real estate, announced today Funds From Operations (FFO) of $20.5 million or $0.25 per share for the fourth quarter ended December 31, 2012; and FFO of $79.0 million or $0.95 per share for the full year ended December 31, 2012. Net income was $5.5 million or $0.07 per share for the fourth quarter and $7.6 million or $0.09 per share for the year ended December 31, 2012.

The Company evaluates its performance based on FFO, Net Income and EPS and believes each is an important measure. A reconciliation of Net Income to FFO, which is a non-GAAP financial measure, is provided on page 3 of this press release.


Three Months Ended Year Ended December 31, December 31, -------------------------- --------------------------(in 000's except per Increase Increase share data) 2012 2011 (Decrease) 2012 2011 (Decrease) ------- ------- ---------- ------- ------- ----------Net Income $ 5,460 $ 5,062 $ 398 $ 7,633 $43,524 $ (35,891) ======= ======= ========== ======= ======= ==========FFO $20,515 $18,457 $ 2,058 $79,041 $71,210 $ 7,831 ======= ======= ========== ======= ======= ==========Per Share Data:EPS $ 0.07 $ 0.06 $ 0.01 $ 0.09 $ 0.53 $ (0.44)FFO $ 0.25 $ 0.22 $ 0.03 $ 0.95 $ 0.87 $ 0.08Weighted average shares (diluted) 82,937 82,937 - 82,937 81,857 1,080 ------- ------- ---------- ------- ------- ----------




Comparing results for the fourth quarter of 2012 to the same period in 2011, FFO increased $2.1 million or $0.03 per share. The FFO increase was primarily from higher property income due to three acquisitions completed since October 2011 and improved occupancy in our portfolio, and increased interest income from secured real estate loans, which was partially offset by higher interest expense and G&A. Net Income and EPS was $5.5 million or $0.07 per share for the fourth quarter of 2012 compared to net income of $5.1 million and $0.06 per share for the fourth quarter of 2011.

Comparing results for the year ended December 31, 2012 to 2011, FFO increased $7.8 million or $0.08 per share. The FFO increase was primarily from higher property income due to seven acquisitions completed since the start of 2011 and improved occupancy in our portfolio, and increased interest income from loans on secured real estate, which was partially offset by higher interest expense and G&A. Net Income and EPS was $7.6 million and $0.09 per share, respectively, for the year ended December 31, 2012 compared to net income of $43.5 million and $0.53 per share for the same period in 2011. For the year ended December 31, 2012, Net Income includes the effect of a loss from discontinued operations of $15.7 million or $0.19 per share. The loss included a $14.8 million loss on a property sold in December and $0.9 million in losses from the operations of the property we sold.

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

"For the fourth quarter of 2012, FSP's profits as represented by FFO totaled approximately $20.5 million or $0.25 per share, an increase of approximately $0.6 million or $0.01 per share compared to the third quarter of 2012. Dividend distributions declared for the fourth quarter of 2012, which are payable on February 14, 2013, will be approximately $15.8 million or $0.19 per share. For the full-year 2012, FSP's profits as represented by FFO totaled approximately $79.0 million or $0.95 per share, an increase of approximately $7.8 million or $0.08 per share compared to full-year 2011. We are optimistic about our potential for continued profit growth in 2013.

"Our directly-owned real estate portfolio of 37 properties, totaling approximately 7,854,679 square feet, was approximately 94.0% leased as of December 31, 2012, up from approximately 89.9% leased at the end of the third quarter and up from approximately 88.7% leased as of December 31, 2011. The increase in the percentage of leased space for the fourth quarter and full-year 2012 continues to make a meaningful contribution to our profit growth. Our property portfolio of primarily suburban office assets has relatively modest lease expirations over the next two years which we have continued to proactively reduce during the course of 2012. As of year-end 2012, only 3.55% of our commercial square footage is scheduled to expire in 2013 and, along with our improving occupancy levels, continues to allow overall tenant improvement expenditures and leasing costs to moderate in relation to the level of rental revenues being achieved.

"There was one new real estate investment completed in the fourth quarter of 2012. On November 1, FSP completed the acquisition of a Class A suburban office property in Houston, Texas known as 'Westchase I & II' for $154.8 million. The property is a two-building office complex totaling approximately 629,025 rentable square feet and is located in Houston's Westchase District. Each building is 14 stories, and the entire property is approximately 96.3% leased to numerous tenants. FSP, its affiliates and predecessor have been investing in suburban Houston since 1993 and with the addition of this asset, we own five properties totaling approximately 1,515,682 square feet in Houston as of year-end 2012. Additional potential real estate investment opportunities are actively being explored and we would anticipate further real estate investments during 2013.

"There were two property dispositions completed in the fourth quarter of 2012. First, one of our single-asset REIT affiliates, 'FSP Phoenix Tower Corp.,' sold its 34-story 623,944 square foot office building in Houston, Texas for $123,750,000. FSP's first mortgage loan of $15 million was repaid in full and our equity investment in Phoenix Tower realized a gain of $1.6 million. The second disposition was our Southfield, Michigan property on which we had taken an estimated provision for loss last quarter. We continuously review and evaluate our directly-owned portfolio of 37 properties for potentially advantageous dispositions and would anticipate further potential opportunities in the area during 2013.

"As 2013 begins, FSP will focus on continuing to grow profits by (1) increasing occupancy and rents on its portfolio of properties while (2) acquiring additional real estate investments that have the potential to add to profits.

"We are very optimistic about our prospects for growth during 2013 and beyond."

Dividend Announcement

On January 26, 2013, the Company announced that its Board of Directors declared a regular quarterly dividend for the three months ended December 31, 2012 of $0.19 per share of common stock payable on February 14, 2013 to stockholders of record on January 25, 2013.

Real Estate Update

Supplementary schedules provide property information for the Company's owned real estate portfolio and for three non-consolidated REITs in which the Company holds preferred stock interests as of December 31, 2012. The Company will also be filing an updated supplemental information package that will provide stockholders and the financial community with additional operating and financial data. The Company will file this supplemental information package with the SEC and make it available on its website at www.franklinstreetproperties.com.

Earnings Call

A conference call is scheduled for February 20, 2013 at 10:00 a.m. (ET) to discuss the fourth quarter and 2012 results. To access the call, please dial 1-888-317-6016. Internationally, the call may be accessed by dialing 1-412-317-6016. To listen via live audio webcast, please visit the Webcasts & Presentations section in the Investor Relations section of the Company's website (www.franklinstreetproperties.com) at least ten minutes prior to the start of the call and follow the posted directions. The webcast will also be available via replay from the above location starting one hour after the call is finished.

A reconciliation of Net Income to FFO is shown below and a definition of FFO is provided on Supplementary Schedule I. Management believes FFO is used broadly throughout the real estate investment trust (REIT) industry as a measurement of performance. The Company has included the NAREIT FFO definition in the table and notes that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently. The Company's computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that define FFO differently.


Reconciliation of Net Income to FFO: Three Months Ended Year Ended December 31, December 31, -------------------- --------------------(In thousands, except per share amounts) 2012 2011 2012 2011 --------- --------- --------- ---------Net income $ 5,460 $ 5,062 $ 7,633 $ 43,524(Gain) loss on sale of or equity interest in properties, less applicable income tax 526 - 14,826 (21,939) GAAP (income) loss from non- consolidated REITs (972) (978) (2,033) (4,490) Distributions from non- consolidated REITs 76 971 2,810 5,056 Depreciation & amortization 15,239 13,247 55,518 48,439 --------- --------- --------- ---------NAREIT FFO 20,329 18,302 78,754 70,590 Acquisition costs of new properties 186 155 287 620 --------- --------- --------- ---------Funds From Operations (FFO) $ 20,515 $ 18,457 $ 79,041 $ 71,210 ========= ========= ========= =========Per Share DataEPS $ 0.07 $ 0.06 $ 0.09 $ 0.53FFO $ 0.25 $ 0.22 $ 0.95 $ 0.87Weighted average shares (basic and diluted) 82,937 82,937 82,937 81,857 ========= ========= ========= =========




Today's news release, along with other news about Franklin Street Properties Corp., is available on the Internet at www.franklinstreetproperties.com. We routinely post information that may be important to investors in the Investor Relations section of our website. We encourage investors to consult that section of our website regularly for important information about us and, if they are interested in automatically receiving news and information as soon as it is posted, to sign up for E-mail Alerts.

About Franklin Street Properties Corp.

Franklin Street Properties Corp., based in Wakefield, Massachusetts, is focused on achieving current income and long-term growth through investments in commercial properties. The majority of FSP's property portfolio is suburban office buildings, with select investments in certain central business district properties. FSP is a Maryland corporation that operates in a manner intended to qualify as a real estate investment trust (REIT) for federal income tax purposes. To learn more about FSP please visit our website at www.franklinstreetproperties.com.

Forward-Looking Statements

Statements made in this press release that state FSP's or management's intentions, beliefs, expectations, or predictions for the future may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This press release may also contain forward-looking statements based on current judgments and current knowledge of management, which are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those indicated in such forward-looking statements. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Investors are cautioned that our forward-looking statements involve risks and uncertainty, including without limitation, economic conditions in the United States, disruptions in the debt markets, economic conditions in the markets in which we own properties, risks of a lessening of demand for the types of real estate owned by us, changes in government regulations and regulatory uncertainty, uncertainty about governmental fiscal policy, geopolitical events and expenditures that cannot be anticipated such as utility rate and usage increases, unanticipated repairs, additional staffing, insurance increases and real estate tax valuation reassessments. See the "Risk Factors" set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2012, as the same may be updated from time to time in subsequent filings with the United States Securities and Exchange Commission. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We will not update any of the forward-looking statements after the date of this press release to conform them to actual results or to changes in our expectations that occur after such date, other than as required by law.


Franklin Street Properties Corp. Earnings Release Supplementary Information Table of Contents Franklin Street Properties Corp. Financial Results A-C Real Estate Portfolio Summary Information D Portfolio and Other Supplementary Information E Quarterly Information - Prior Four Quarters F Percentage of Leased Space G Largest 20 Tenants - FSP Owned Portfolio H Definition of Funds From Operations (FFO) I Franklin Street Properties Corp. Financial Results Supplementary Schedule A Condensed Consolidated Income (Loss) Statements (Unaudited) For the For the Three Months Ended Year Ended December 31, December 31, -------------------- --------------------(in thousands, except per share amounts) 2012 2011 2012 2011 --------- --------- --------- ---------Revenue: Rental $ 41,532 $ 36,744 $ 151,656 $ 134,238Related party revenue: Management fees and interest income from loans 1,801 1,051 10,947 4,046Other 87 29 199 49 --------- --------- --------- --------- Total revenue 43,420 37,824 162,802 138,333 --------- --------- --------- ---------Expenses: Real estate operating expenses 10,501 9,486 37,441 35,076 Real estate taxes and insurance 5,960 5,357 22,913 20,114 Depreciation and amortization 15,225 12,951 54,872 47,622 Selling, general and administrative 2,462 2,012 9,916 6,913 Interest 4,167 3,261 16,068 12,666 --------- --------- --------- --------- Total expenses 38,315 33,067 141,210 122,391 --------- --------- --------- ---------Income before interest income, equity in earnings of non- consolidated REITs and taxes 5,105 4,757 21,592 15,942Interest income 34 3 51 22Equity in earnings of non- consolidated REITs 972 978 2,033 3,685 --------- --------- --------- ---------Income before taxes on income 6,111 5,738 23,676 19,649Taxes on income 99 82 335 267 --------- --------- --------- --------- Income from continuing operations 6,012 5,656 23,341 19,382 --------- --------- --------- --------- Discontinued operations: Income (loss) from discontinued operations, net of income tax (26) (594) (882) 2,203 Gain (loss) on sale, less applicable income tax (526) - (14,826) 21,939 --------- --------- --------- --------- Total discontinued operations (552) (594) (15,708) 24,142 --------- --------- --------- ---------Net income (loss) $ 5,460 $ 5,062 $ 7,633 $ 43,524 ========= ========= ========= =========Weighted average number of shares outstanding, basic and diluted 82,937 82,937 82,937 81,857 ========= ========= ========= =========Earnings (loss) per share, basic and diluted, attributable to: Continuing operations $ 0.07 $ 0.07 $ 0.28 $ 0.24 Discontinued operations - (0.01) (0.19) 0.29 --------- --------- --------- ---------Net income per share, basic and diluted $ 0.07 $ 0.06 $ 0.09 $ 0.53 ========= ========= ========= ========= Franklin Street Properties Corp. Financial Results Supplementary Schedule B Condensed Consolidated Balance Sheets (Unaudited) December 31, ------------------------(in thousands, except share and par value amounts) 2012 2011 ----------- -----------Assets:Real estate assets, net $ 1,142,628 $ 991,225Acquired real estate leases, less accumulated amortization of $40,062 and $31,189, respectively 111,982 91,613Investment in non-consolidated REITs 81,960 87,598Assets held for sale - 15,355Cash and cash equivalents 21,267 23,813Restricted cash 575 493Tenant rent receivables, less allowance for doubtful accounts of $1,300 and $1,235, respectively 1,749 1,460Straight-line rent receivable, less allowance for doubtful accounts of $135 and $135, respectively 35,441 28,502Prepaid expenses 1,106 1,223Related party mortgage loan receivables 93,896 140,516Other assets 12,655 4,070Office computers and furniture, net of accumulated depreciation of $584 and $428, respectively 544 468Deferred leasing commissions, net of accumulated amortization of $11,812 and $9,139, respectively 23,376 22,325 ----------- ----------- Total assets $ 1,527,179 $ 1,408,661 =========== ===========Liabilities and Stockholders' Equity:Liabilities: Bank note payable $ 216,750 $ 449,000 Term loan payable 400,000 - Accounts payable and accrued expenses 31,122 26,446 Accrued compensation 2,540 2,222 Tenant security deposits 2,489 2,008 Other liabilities: derivative liability 1,219 - Acquired unfavorable real estate leases, less accumulated amortization of $4,870 and $3,759, respectively 8,310 7,618 ----------- ----------- Total liabilities 662,430 487,294 ----------- -----------Commitments and contingenciesStockholders' Equity: Preferred stock, $.0001 par value, 20,000,000 shares authorized, none issued or outstanding - - Common stock, $.0001 par value, 180,000,000 shares authorized, 82,937,405 and 82,937,405 shares issued and outstanding, respectively 8 8 Additional paid-in capital 1,042,876 1,042,876 Accumulated other comprehensive loss (1,219) - Accumulated distributions in excess of accumulated earnings (176,916) (121,517) ----------- ----------- Total stockholders' equity 864,749 921,367 ----------- ----------- Total liabilities and stockholders' equity $ 1,527,179 $ 1,408,661 =========== =========== Franklin Street Properties Corp. Financial Results Supplementary Schedule C Condensed Consolidated Statements of Cash Flows (Unaudited) December 31, ------------------------(in thousands) 2012 2011 ----------- -----------Cash flows from operating activities: Net income $ 7,633 $ 43,524 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization expense 57,500 50,261 Amortization of above market lease 71 (47) Gain (loss) on sale, less applicable income tax 14,826 (21,939) Equity in earnings of non-consolidated REITs (2,033) (3,086) Distributions from non-consolidated REITs 705 3,474 Increase (decrease) in bad debt reserve 65 (365) Changes in operating assets and liabilities: Restricted cash (82) (73) Tenant rent receivables (354) 827 Straight-line rents (4,464) (9,878) Lease acquisition costs (2,520) - Prepaid expenses and other assets (328) 1,611 Accounts payable, accrued expenses and other items 3,717 4,213 Accrued compensation 318 419 Tenant security deposits 481 78 Payment of deferred leasing commissions (5,179) (8,058) ----------- ----------- Net cash provided by operating activities 70,356 60,961 ----------- -----------Cash flows from investing activities: Purchase of real estate assets, office computers and furniture (183,868) (174,020) Acquired real estate leases (37,302) (62,230) Investment in non-consolidated REITs (1) (10) Distributions in excess of earnings from non- consolidated REITs 2,105 1,582 Investment in related party mortgage loan receivable (74,580) (82,832) Repayment of related party mortgage loan receivable 121,200 - Changes in deposits on real estate assets - 200 Investment in assets held for syndication - 2,230 Proceeds received on sales of real estate assets 157 96,790 ----------- ----------- Net cash used in investing activities (172,289) (218,290) ----------- -----------Cash flows from financing activities: Distributions to stockholders (63,032) (62,177) Proceeds from equity offering - 18,001 Offering costs - (706) Borrowings under bank note payable 294,750 449,000 Repayments of bank note payable (527,000) (209,968) Borrowing (repayment) of term loan payable 400,000 (74,850) Deferred financing costs (5,331) (5,388) Swap termination payment - (983) ----------- ----------- Net cash provided by financing activities 99,387 112,929 ----------- -----------Net increase (decrease) in cash and cash equivalents (2,546) (44,400)Cash and cash equivalents, beginning of year 23,813 68,213 ----------- -----------Cash and cash equivalents, end of year $ 21,267 $ 23,813 =========== =========== Franklin Street Properties Corp. Earnings Release Supplementary Schedule D Real Estate Portfolio Summary Information (Unaudited & Approximated) Commercial portfolio lease expirations (1) Total % of Year Square Feet Portfolio ------------ ------------ 2013 278,946 3.6% 2014 417,721 5.3% 2015 1,074,381 13.7% 2016 1,099,491 14.0% 2017 876,268 11.2% Thereafter (2) 4,107,872 52.2% ------------ ------------ 7,854,679 100.0% ============ ============




(1) Percentages are determined based upon square footage of expiring commercial leases.
(2) Includes 472,776 square feet of current vacancies.


(dollars & square feet in 000's) As of December 31, 2012 ------------------------------------------------- # of % of Square % ofState Properties Investment Portfolio Feet Portfolio ---------- ---------- --------- ------ ---------Texas 11 $ 421,397 36.9% 2,657 33.8%Colorado 4 122,335 10.7% 788 10.0%Georgia 2 107,725 9.4% 774 9.9%Virginia 4 99,295 8.7% 685 8.7%Minnesota 2 39,899 3.5% 628 8.0%Missouri 3 66,083 5.8% 477 6.1%North Carolina 3 67,032 5.9% 431 5.5%Illinois 2 49,869 4.3% 372 4.7%Maryland 1 53,377 4.7% 326 4.2%Florida 1 45,569 4.0% 213 2.7%Indiana 1 34,777 3.0% 205 2.6%California 2 21,444 1.9% 182 2.3%Washington 1 13,826 1.2% 117 1.5% ---------- ---------- --------- ------ --------- 37 $1,142,628 100.0% 7,855 100.0% ========== ========== ========= ====== ========= Franklin Street Properties Corp. Earnings Release Supplementary Schedule E Portfolio and Other Supplementary Information (Unaudited & Approximated) Capital Expenditures Owned Portfolio Year Ended ----------------------- (in thousands) 31-Dec-12 31-Dec-11 ----------- ----------- Tenant improvements $ 13,037 $ 19,032 Deferred leasing costs 7,427 8,058 Building improvements 3,712 2,826 ----------- ----------- $ 24,176 $ 29,916 =========== ===========Square foot & leased percentages December 31, December 31, 2012 2011 ------------ ------------Owned portfolio of commercial real estate (a) Number of properties 37 36 Square feet 7,854,679 7,052,068 Leased percentage 94% 89%Investments in non-consolidated REITs (b) Number of properties 2 3 Square feet 1,392,316 2,001,542 Leased percentage 65% 87%Single Asset REITs (SARs) managed Number of properties 13 13 Square feet 3,323,566 3,322,639 Leased percentage 87% 80%Total owned, investments & managed properties (a) Number of properties 52 52 Square feet 12,570,561 12,376,249 Leased percentage 89% 86%(a) 2011 Includes asset sold in 2012.(b) 2011 Includes FSP Phoenix Tower Corp., which was sold in 2012.




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


% Square % Leased InterestSingle Asset REIT name City State Feet 31-Dec-12 Held-------------------------- ----------- ----- --------- --------- ---------FSP 303 East Wacker Drive Corp. Chicago IL 857,245 55.7% 43.7%FSP Grand Boulevard Corp. Kansas City MO 535,071 80.5% 27.0% --------- --------- 1,392,316 65.2% --------- --------- Franklin Street Properties Corp. Earnings Release Supplementary Schedule F: Quarterly Information (Unaudited)(in thousands) Q1 Q2 Q3 Q4 AnnualRevenue: 2012 2012 2012 2012 2012 ------- ------- -------- ------- -------- Rental $36,303 $35,570 $ 38,251 $41,532 $151,656 Related party revenue: Management fees and interest income from loans 2,616 3,045 3,485 1,801 10,947 Other 34 39 39 87 199 ------- ------- -------- ------- -------- Total revenues 38,953 38,654 41,775 43,420 162,802 ------- ------- -------- ------- --------Expenses: Real estate operating expenses 8,697 8,604 9,639 10,501 37,441 Real estate taxes and insurance 5,696 5,493 5,764 5,960 22,913 Depreciation and amortization 13,071 13,004 13,572 15,225 54,872 Selling, general and administrative 2,077 2,236 3,141 2,462 9,916 Interest 3,677 4,037 4,187 4,167 16,068 ------- ------- -------- ------- -------- Total expenses 33,218 33,374 36,303 38,315 141,210 ------- ------- -------- ------- -------- Income before interest income, equity in earnings of non- consolidated REITs and taxes on income 5,735 5,280 5,472 5,105 21,592 Interest income 8 4 5 34 51 Equity in earnings of non-consolidated REITs 391 494 176 972 2,033 ------- ------- -------- ------- -------- Income before taxes on income 6,134 5,778 5,653 6,111 23,676 Taxes on income 79 77 80 99 335 ------- ------- -------- ------- -------- Income from continuing operations 6,055 5,701 5,573 6,012 23,341 ------- ------- -------- ------- -------- Discontinued operations: Income from discontinued operations, net of tax (317) (268) (271) (26) (882) Gain (loss) on sale, less applicable income tax - - (14,300) (526) (14,826) ------- ------- -------- ------- -------- Total discontinued operations (317) (268) (14,571) (552) (15,708) ------- ------- -------- ------- -------- Net income $ 5,738 $ 5,433 $ (8,998) $ 5,460 $ 7,633 ======= ======= ======== ======= ========FFO calculations:Net income $ 5,738 $ 5,433 $ (8,998) $ 5,460 $ 7,633 ------- ------- -------- ------- --------Gain (loss) on sale, less applicable income tax - - 14,300 526 14,826 GAAP income from non- consolidated REITs (391) (494) (176) (972) (2,033) Distributions from non- consolidated REITs 929 898 907 76 2,810 Acquisition costs - - 101 186 287 Depreciation of real estate & intangible amortization 13,295 13,205 13,779 15,239 55,518 ------- ------- -------- ------- --------Funds From Operations (FFO) $19,571 $19,042 $ 19,913 $20,515 $ 79,041 ======= ======= ======== ======= ======== Franklin Street Properties Corp. Earnings Release Supplementary Schedule G Percentage of Leased Space (Unaudited & Estimated) Third Fourth % Quarter % Quarter Leased Average Leased Average (1) % (1) % Property Square as of Leased as of Leased Name Location Feet 30-Sep-12 (2) 31-Dec-12 (2) ------------ ------------- --------- --------- ------- --------- -------1 PARK SENECA Charlotte, NC 109,406 77.3% 78.2% 79.3% 79.4%2 HILLVIEW CENTER Milpitas, CA 36,288 100.0% 100.0% 100.0% 100.0%3 FOREST PARK Charlotte, NC 62,212 100.0% 100.0% 100.0% 100.0%4 CENTENNIAL Colorado Springs, CO 110,405 85.4% 85.4% 85.4% 85.4%5 MEADOW POINT Chantilly, VA 138,537 100.0% 100.0% 100.0% 100.0%6 TIMBERLAKE Chesterfield, MO 232,766 97.0% 97.0% 97.0% 97.0%7 FEDERAL WAY Federal Way, WA 117,010 47.0% 47.0% 47.0% 47.0%8 NORTHWEST Elk Grove POINT Village, IL 176,848 100.0% 100.0% 100.0% 100.0%9 TIMBERLAKE Chesterfield, EAST MO 116,197 97.0% 97.0% 97.0% 97.0%10 PARK TEN Houston, TX 155,715 96.1% 96.1% 96.1% 96.1%11 MONTAGUE San Jose, CA 145,951 100.0% 100.0% 100.0% 100.0%12 ADDISON Addison, TX 293,787 98.4% 96.7% 98.4% 98.4%13 COLLINS Richardson, CROSSING TX 298,766 90.0% 88.5% 90.0% 90.0%14 GREENWOOD PLAZA Englewood, CO 196,236 48.9% 48.9% 100.0% 83.0%15 RIVER Indianapolis, CROSSING IN 205,059 97.0% 96.7% 92.2% 94.1%16 LIBERTY PLAZA Addison, TX 218,934 85.2% 85.2% 81.7% 82.9%17 INNSBROOK Glen Allen, VA 298,456 98.3% 98.3% 98.3% 98.3%18 380 Broomfield, INTERLOCKEN CO 240,184 89.5% 89.5% 89.5% 89.5%19 BLUE LAGOON Miami, FL 212,619 100.0% 100.0% 100.0% 100.0%20 ELDRIDGE GREEN Houston, TX 248,399 100.0% 100.0% 100.0% 100.0%21 WILLOW BEND Plano, TX 117,050 77.8% 77.8% 77.8% 77.8%22 ONE OVERTON PARK Atlanta, GA 387,267 94.6% 94.6% 94.6% 94.6%23 390 Broomfield, INTERLOCKEN CO 241,516 97.2% 97.2% 97.2% 97.2%24 EAST BALTIMORE Baltimore, MD 325,445 57.2% 57.5% 77.3% 77.3%25 PARK TEN PHASE II Houston, TX 156,746 100.0% 100.0% 100.0% 100.0%26 LAKESIDE Maryland CROSSING I Heights, MO 127,778 100.0% 100.0% 100.0% 100.0%27 LOUDOUN TECH Dulles, VA 135,888 100.0% 100.0% 100.0% 100.0%28 4807 STONECROFT Chantilly, VA 111,469 100.0% 100.0% 100.0% 100.0%29 EDEN BLUFF Eden Prairie, MN 153,028 100.0% 100.0% 100.0% 100.0%30 121 SOUTH Minneapolis, EIGHTH ST MN 475,303 91.1% 92.6% 90.6% 90.8%31 EMPEROR BOULEVARD Durham, NC 259,531 100.0% 100.0% 100.0% 100.0%32 LEGACY TENNYSON CTR Plano, TX 202,600 100.0% 100.0% 100.0% 100.0%33 ONE LEGACY Plano, TX 214,110 100.0% 100.0% 100.0% 100.0%34 909 DAVIS Evanston, IL 195,245 97.9% 96.9% 97.9% 97.9%35 1410 EAST Richardson, RENNER TX 122,300 100.0% 100.0% 100.0% 100.0%36 ONE RAVINIA DRIVE Atlanta, GA 386,603 84.5% 84.0% 91.0% 86.6%37 WESTCHASE I & II Houston, TX 629,025 n/a n/a 96.3% 96.3% --------- --------- ------- --------- ------- TOTAL WEIGHTED AVERAGE (3) 7,854,679 89.9% 89.8% 94.0% 92.4% --------- --------- ------- --------- -------




(1) % Leased as of month's end includes all leases that expire on the last day of the quarter.
(2) Average quarterly percentage is the average of the end of the month leased percentage for each of the 3 months during the quarter.
(3) Third & Fourth Quarter Total Weighted Averages include asset sold in December 2012 located in Southfield, Michigan with 214,697 sf


Franklin Street Properties Corp. Earnings Release Supplementary Schedule H Largest 20 Tenants - FSP Owned Portfolio (Unaudited & Estimated)The following table includes the largest 20 tenants in FSP's owned portfolio based on leased square feet: As of December 31, 2012 SIC % of Tenant Sq Ft Code Portfolio ---------------------------------------------- --------- ----- ---------1 TCF National Bank 268,252 60 3.4%2 Quintiles Transnational Corp 259,531 87 3.3%3 CITGO Petroleum Corporation 248,399 29 3.2%4 Burger King Corporation 212,619 58 2.7%5 Denbury Onshore LLC 202,600 13 2.6%6 RGA Reinsurance Company 197,354 63 2.5%7 SunTrust Bank 182,888 60 2.3%8 Citicorp Credit Services, Inc 176,848 61 2.3%9 C.H. Robinson Worldwide, Inc 153,028 47 1.9%10 T-Mobile South, LLC dba T-Mobile 151,792 48 1.9%11 Houghton Mifflin Harcourt Publishing Company 150,050 27 1.9%12 Petrobras America, Inc. 144,813 13 1.8%13 Murphy Exploration & Production Company 144,677 13 1.8%14 Giesecke & Devrient America, Inc. 135,888 73 1.7%15 Monsanto Company 127,778 28 1.6%16 Federal National Mortgage Association 123,144 61 1.6%17 AT&T Services, Inc. 122,300 48 1.6%18 Vail Holdings, Inc. 122,232 79 1.6%19 Kaiser Foundation Health Plan, Inc. 120,979 64 1.5%20 Northrop Grumman Systems Corporation 111,469 73 1.5% --------- --------- Total 3,356,641 42.7% --------- ---------




(a) Based on rentable square footage


Franklin Street Properties Corp. Earnings Release Supplementary Schedule I Definition of Funds From Operations ("FFO"),




The Company evaluates performance based on Funds From Operations, which we refer to as FFO, as management believes that FFO represents the most accurate measure of activity and is the basis for distributions paid to equity holders. The Company defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of property and acquisition costs of newly acquired properties that are not capitalized, plus depreciation and amortization, including amortization of acquired above and below market lease intangibles and impairment charges, and after adjustments to exclude non-cash income (or losses) from non-consolidated or Sponsored REITs, plus distributions received from non-consolidated or Sponsored REITs.

FFO should not be considered as an alternative to net income (determined in accordance with GAAP), nor as an indicator of the Company's financial performance, nor as an alternative to cash flows from operating activities (determined in accordance with GAAP), nor as a measure of the Company's liquidity, nor is it necessarily indicative of sufficient cash flow to fund all of the Company's needs.

Other real estate companies and the National Association of Real Estate Investment Trusts, or NAREIT, may define this term in a different manner. We have included the NAREIT FFO definition in our table and note that other REITs may not define FFO in accordance with the current NAREIT definition or may interpret the current NAREIT definition differently than we do.

We believe that in order to facilitate a clear understanding of the results of the Company, FFO should be examined in connection with net income and cash flows from operating, investing and financing activities in the consolidated financial statements.



Contact:
John Demeritt
(877) 686-9496





Source: Marketwire


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