Franklin Street Properties Corp. · AMEX:FSP
Franklin Street Properties — Investor Presentation (June 2009)
28 slides from Franklin Street Properties's investor presentation, Jun 2, 2009
Slide 1: Forward-looking and non-GAAP disclaimer
Unless otherwise indicated, all information contained in this presentation is as of March 31, 2009. This presentation contains references to Funds from Operations (“FFO”) and FFO plus Gains on Sales (“FFO+GOS”). Such measurements are not generally accepted accounting principles (“GAAP”). Please refe
Slide 2: The Franklin Street Properties Story
The Franklin Street Properties Story Franklin Street Properties Today y - } a — Sl al tt Franklin Street Properties Strategy Appendix
Slide 3: Team Strengths Drive Business Model
Team Strengths Drive Business Model
Slide 4: Prudent Management
Prudent Management Clean Efficient Balance Access Sheet Selectively Manage to Capital target te ‘imi: irgel oa SS { fo maximize acquisitions value Total on —— Recycle assets strategy: income to maximize plus gains returns Investment Banking / Asset Management Platform High-Quality Assets
Slide 5: FFO + GOS = Total Profits
FFO + GOS = Total Profits Sources of Income and Consistent Core FFO Growth
Slide 6: Sources of income by year
$160,000 = Rents from OwnedPropatties, "Investment Barking $120,000 "Gains onSale $80,000 ~ LI go + 2005 2006 2007 2008
Slide 7: Growth in Real Estate Assets and Capital Structure
_____________________ (1) Excludes Investment Banking segment FFO and Gains on Sale. Growth in Real Estate Assets and Capital Structure
Slide 8: A Geographically Diverse Portfolio
A Geographically Diverse Portfolio
Slide 9: Map of owned and managed properties
@ Owned Office Building @ Owned Industrial Property @ Managed Office Building @ Managed Office Building - Under Construction
Slide 10: Consistent Occupancy in Owned Portfolio
Consistent Occupancy in Owned Portfolio
Slide 11: Occupancy by year
100% 92% 39% 93% 93% 93% 2005 2006 2007 2008 192009
Slide 12: Manageable Lease Expirations
_____________________ As of March 31, 2009. (1) Capital One currently sublets all of the space to LandAmerica Financial Group, Inc. LandAmerica Financial Group, Inc.’s direct lease with FSP begins when the Capital One lease expires on Oct. 31, 2009. On November 26, 2008, LandAmerica Financial Group,
Slide 13: Strategic Asset Dispositions
_____________________ (1) Average of annual percentage lease expirations for BDN, OFC, KRC, LXP, PKY and PSB. Strategic Asset Dispositions
Slide 14: Acquisition Case Study – Interlocken
Acquisition Case Study – 390 Interlocken
Slide 15: Disposition Case Study – Fair Lakes
Disposition Case Study – Fair Lakes
Slide 16: Disposition Case Study – Plaza Ridge
Total return on investment of 87.2% Disposition Case Study – Plaza Ridge
Slide 17: Investment Banking Segment
Total return on investment of 117.3% Investment Banking Segment
Slide 18: Investment banking segment and sponsored REITs
• Investment banking segment employs seven broker/dealers and generates syndication and transaction fees from non-traded REITs sponsored by FSP • Non-traded REITs sponsored by FSP target opportunities deemed out of the risk/reward profile for FSP (development, significant value-add) • Sponsored REIT
Slide 19: Historical Returns
• Decline in activity in 2005-2007 shows impact of cap rate compression – Compelling opportunities were more difficult to find for sponsored REIT investors – Lower yields from cap rate changes reduced investor interest • 2008-present reflects investor uncertainty in current environment Historical Re
Slide 20: Ten-Year Investment Performance
Ten-Year Investment Performance (1)(2)
Slide 21: Total Return Comparisons
_____________________ (1) All price values prior to June 2, 2005 were estimated by FSP in consultation with third party advisors and do not reflect actual trades. (2) Return figures assume no reinvestment of dividends. Total Return Comparisons
Slide 22: LTM Total Return Comparison
LTM Total Return Comparison (1)
Slide 23: LTM total return versus peers
_____________________ Source: SNL Financial. As of May 22, 2009. (1) Total return figures assume the reinvestment of dividends. (2) Includes: BDN, OFC, KRC, LXP, PKY, PSB.
Slide 24: Current Market Dynamics Play to Our Strengths...
Current Market Dynamics Play to Our Strengths...
Slide 25: Result: Outstanding Growth Opportunity with Lower Risk
Result: Outstanding Growth Opportunity with Lower Risk
Slide 26: Property Acquisition Principles
Property Acquisition Principles
Slide 27: Execute business model
Execute business model — grow the business Target debt at 10-40% Deliver consistent, low risk growth and profitability Focus on exceptional buying opportunities due to dislocation
Slide 28: Historical Profit Perspectives
Historical Profit Perspectives
Franklin Street Properties — Investor Presentation (June 2009) on 6ix