Franklin Street Properties Corp. · AMEX:FSP
Franklin Street Properties — Q3 2015 Earnings Presentation
29 slides from Franklin Street Properties's earnings presentation, Oct 27, 2015
Slide 1: Table of Contents
Table of Contents Page Page Company Overview 3 Tenant Analysis and Leasing Activity Tenants by Industry 18 Key Financial Data 20 Largest Tenants with Annualized Rent and Remaining Term 19 Financial Highlights 4 Leasing Activity 20 Income Statements 5 Lease Expirations by Square Feet 21 Balance Sheet
Slide 2: Company Overview
Company Overview Overview Snapshot (as of September 30, 2015) Franklin Street Properties Corp. ³)63 (NYSE MKT: FSP) is investing in Corporate Headquarters Wakefield, MA institutional-quality office properties in the U.S.)63 V strategy is to invest in select urban infill and central Fiscal Year-End 3
Slide 3: Summary of Financial Highlights
Summary of Financial Highlights (in thousands except per share amounts, SF & number of properties) 30-Sep-15 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 Income Items: Rental revenue $ 60,386 $ 58,801 $ 59,013 $ 61,022 $ 59,728 Total revenue 61,877 60,233 60,507 62,489 61,190 Adjusted EBITDA* 32,567 32,6
Slide 4: Condensed Consolidated Income Statements
Condensed Consolidated Income Statements ($ in thousands, except per share amounts) For the Nine For the For the Three Months Ended Months Ended For the Three Months Ended Year Ended 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Dec-14 Revenue: Rental $ 59,013 $
Slide 5: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets (in thousands) March 31, June 30, September 30, March 31, June 30, September 30, December 31, 2015 2015 2015 2014 2014 2014 2014 Assets: Real estate assets: Land $ 174,707 $ 180,271 $ 180,271 $ 185,479 $ 185,479 $ 185,479 $ 183,930 Buildings and improvements 1,5
Slide 6: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in thousands) Nine Months ended September 30, Twelve Months ended December 31 2015 2014 2014 2013 Cash flows from operating activities: Net income $ 19,602 $ 8,853 $ 13,148 $ 19,827 Adjustments to reconcile net income to net cash provided by operating
Slide 7: Property Net Operating Income (NOI) with Same Store Comparison
Property Net Operating Income (NOI)* with Same Store Comparison (in thousands) (in thousands) Rentable Nine Months Nine Months Square Feet Three Months Ended Ended Three Months Ended Ended Inc % Region or RSF 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 31-Mar-14 30-Jun-14 30-Sep-14 30-Sep-14 (Dec) Chang
Slide 8: FFO & AFFO Reconciliation
FFO & AFFO Reconciliation (in thousands, except per share amounts) For the Nine For the For the Three Months Ended Months Ended For the Three Months Ended Year Ended 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Dec-14 Net income $ 12,533 $ 3,903 $ 3,166 $ 19,602
Slide 9: EBITDA Reconciliation
EBITDA Reconciliation (in thousands, except ratio amounts) Nine Months For the Three Months Ended Ended For the Three Months Ended Year Ended 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 31-Dec-14 Net income $ 12,533 $ 3,903 $ 3,166 $ 19,602 $ 3,573 $ 3,713 $ 1,567
Slide 10: Reconciliation of Net Income to Property NOI
Reconciliation of Net Income to Property NOI* (in thousands) Reconciliation to Net income Nine Months Nine Months Three Months Ended Ended Three Months Ended Ended 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 31-Mar-14 30-Jun-14 30-Sep-14 30-Sep-14 Net Income $ 12,533 $ 3,903 $ 3,166 $ 19,602 $ 3,573 $ 3
Slide 11: Capital Analysis
Capital Analysis (in thousands, except per share amounts) 31-Mar-15 30-Jun-15 30-Sep-15 31-Mar-14 30-Jun-14 30-Sep-14 31-Dec-14 Market Data: Shares Outstanding 100,187 100,187 100,187 100,187 100,187 100,187 100,187 Closing market price per share $ 12.82 $ 11.31 $ 10.75 $ 12.60 $ 12.58 $ 11.22 $ 12.
Slide 12: Portfolio Overview
Portfolio Overview As of the Quarter Ended Portfolio Breakdown by 30-Sep-15 30-Jun-15 31-Mar-15 31-Dec-14 30-Sep-14 FSP Participation Owned portfolio of commercial real estate: Owned Properties Number of properties 36 36 36 38 39 Square feet 9,640,904 9,639,740 9,310,131 9,580,057 9,690,361 Non-Cons
Slide 13: Owned Portfolio Overview
Owned Portfolio Overview Percent Wtd Ave (a) GAAP (b) Percent Wtd Ave (a) GAAP (b) MSA / Property Name City State Square Feet Leased Occupied Rent MSA / Property Name City State Square Feet Leased Occupied Rent East Region Midwest Region Baltimore Chicago East Baltimore Baltimore MD 325,445 85.4% 81
Slide 14: Owned Portfolio Overview
Owned Portfolio Overview Percent Wtd Ave (a) GAAP (b) Percent Wtd Ave (a) GAAP (b) MSA / Property Name City State Square Feet Leased Occupied Rent MSA / Property Name City State Square Feet Leased Occupied Rent South Region West Region Dallas-Fort Worth Seattle Legacy Tennyson Center Plano TX 202,60
Slide 15: Managed Portfolio Overview
Managed Portfolio Overview MSA / Property Name City State Square Feet MSA / Property Name City State Square Feet Southeast Region Midwest Region Columbia Chicago 1441 Main Street Columbia SC 264,857 (a) East Wacker Chicago IL 861,000 Atlanta Indianapolis Satellite Place Duluth GA 134,785 Monument Ci
Slide 16: Tenants by Industry (By Square Feet)
Tenants by Industry (By Square Feet) Oil & Gas 16.55% Other 16.86% Medical Professionals & Social Services 2.81% Restaurants 3.00% Banking 10.18% Medical Research 3.06% Insurance 3.17% Legal Services 8.57% Architecture & Engineering 3.47% Real Estate 3.57% General Business Services 3.75% IT & Comput
Slide 17: Largest Tenants with Annualized Rent and Remaining Term
20 Largest Tenants with Annualized Rent and Remaining Term (Owned Portfolio) Remaining Aggregate Annualized % of Aggregate Tenant Number of Lease Term Leased % of Total Rent Leased Name Leases in Months Square Feet Square Feet (in 000's) Annualized Rent 1 TCF National Bank 2 3 263,111 2.7% $ 2,997,5
Slide 18: Leasing Activity (Owned Portfolio)
Leasing Activity (Owned Portfolio) Nine Months Year Year Ended Ended Ended Leasing Activity 30-Sep-15 31-Dec-14 31-Dec-13 (in Square Feet - SF) New leasing 262,000 149,000 267,000 Renewals 454,000 635,000 645,000 716,000 784,000 912,000 Other information per SF (Activity on a year-to-date basis) GAA
Slide 19: Lease Expirations by Square Feet
Lease Expirations by Square Feet (Owned Portfolio) % of Square 2,000,000 Year Total Square Feet Feet 1,800,000 2015 69,019 0.7% 2016 1,005,764 10.4% 1,600,000 2017 1,119,778 11.6% 1,400,000 2018 996,420 10.3% 2019 1,473,328 15.3% 1,200,000 2020 859,385 8.9% 1,000,000 2021 816,955 8.5% 2022 992,342 1
Slide 20: Lease Expirations with Annualized Rent per Square Foot
Lease Expirations with Annualized Rent per Square Foot (Owned Portfolio ) Rentable Annualized Percentage Number of Square Rent of Total Year of Leases Footage Annualized Per Square Annualized Lease Expiring Subject to Rent Under Foot Under Rent Under Expiration Within the Expiring Expiring Expiring
Slide 21: Capital Expenditures
Capital Expenditures (in thousands) Nine Months For the Three Months Ended Ended 31-Mar-15 30-Jun-15 30-Sep-15 30-Sep-15 Tenant improvements $ 2,936 $ 3,420 $ 1,794 $ 8,150 Deferred leasing costs 830 1,539 1,490 3,859 Non-investment capex 643 1,418 1,090 3,151 Recurring Capital Expenditures 4,409 6,
Slide 22: Transaction Activity
Transaction Activity (in thousands except for Square feet) Recent Acquisitions: Purchase Price City State Square Feet Date Acquired 2015 Two Ravinia Atlanta GA 442,130 4/8/15 $ 78,000 2013 1999 Broadway Denver CO 673,793 5/22/13 $ 183,000 999 Peachtree Atlanta GA 621,946 7/1/13 157,900 1001 17th Str
Slide 23: Loan Portfolio of Secured Real Estate
Loan Portfolio of Secured Real Estate (in thousands) (dollars in thousands) Maximum Amount Interest Maturity Amount Drawn at Interest Draw Rate at Sponsored REIT Location Date of Loan 30-Sep-15 Rate (1) Fee (2) 30-Sep-15 Secured revolving lines of credit FSP Satellite Place Corp. Duluth, GA 31-Mar-1
Slide 24: Net Asset Value Components
Net Asset Value Components (in thousands except per share data) As of Assets: Other information: 30-Sep-15 Loans outstanding on secured RE $ 93,641 Leased SF to be FFO producing Total Market Capitalization Values Investments in SARs (book basis) 77,853 During 2015 (in 000's) 74 Shares outstanding 10
Slide 25: Appendix: Definition of Funds From Operations (FFO)
Appendix: Non-GAAP Financial Measure Definitions 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
Slide 26: Appendix: Definition of EBITDA and Adjusted EBITDA
Appendix: Non-GAAP Financial Measure Definitions Definition of Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) and Adjusted EBITDA EBITDA is defined as net income plus interest expense, income tax expense and depreciation and amortization expense. Adjusted EBITDA is defined a
Slide 27: Appendix: Definition of Adjusted Funds From Operations (AFFO)
Appendix: Non-GAAP Financial Measure Definitions Definition of Adjusted Funds From Operations (AFFO) The Company defines AFFO as the sum of (1) FFO; (2) excluding our proportionate share of FFO and including distributions received, from non-consolidated REITs; (3) excluding the effect of straight-li
Slide 28: Investor Relations Contact
Investor Relations Contact: Georgia Touma (877) 686-9496 InvestorRelations@franklinstreetproperties.com One & Two RaviniaDrive, Atlanta, GA www.franklinstreetproperties.com Franklin Street Properties Corp. 401 Edgewater Place Wakefield, MA 01880 (781)557-1300
Slide 29: Investor Relations Contact
Investor Relations Contact: Georgia Touma FRANKLIN (877) 686-9496 STREET PROPERTIES ‘One & Two Ravinia Drive, Atlanta, GA Franklin Street Properties Corp. * 401 Edgewater Place * Wakefield, MA 01880 » (781) 557-1300 www.franklinstreetproperties.com
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